$6500 Tax Credit for Repeat Buyers: Are you eligible?
First-time buyers seem to be up on the $8,000 tax credit. But we get the feel that not enough folks are informed on the $6,500 tax credit available for repeat homebuyers. Are you in the know? Here’s a quick overview:
ELIGIBILITY Qualified move-up or repeat home buyers purchasing any kind of home are eligible to claim this credit.
DEFINE REPEAT A person who has owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase date. Both spouses must qualify as long-time residents, with at least five years of principal residency for each. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
HOW MUCH 10 percent of the home’s purchase price up to a maximum of $6,500
MAX PURCHASE > $800,000 not eligible for the tax credit
INCOME LIMITS? Yes. The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
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