Move up Home buyer Tax Credit Now in Effect-Parker News

You may be eligible for the tax credit if you…

• have lived in your home for 5 of the last 8 years
• have an adjusted gross income of not more than $125,000 for single filers and not more than $225,000 married filing jointly you can receive the $6,500 tax break.
  
• you must be under contract before April 30th 2010 and close the deal by June 30, 2010.
• There is also an anti-flipping provision – Any homeowner who collects the credit and sells the property within three years must return the money.

Washington Report: Expansion of Tax Credit – Here’s something in the expanded program that hasn’t gotten much attention: The new $6,500 federal tax credit for so-called “move up” buyers took effect immediately upon enactment.  That means that potentially hundreds of thousands of Americans who fit the key ownership and income criteria for the new credit are eligible for it … right now.  What are those tests?  1) You have to have owned and used your current home as your principal residence for five consecutive years out the past eight; 2) Your adjusted household annual income cannot exceed $125,000 if you file taxes as a single, or $225,000 if you are married filing jointly.  To qualify, you must sign a contract to purchase a replacement residence before next April 30, and go to closing on it by June 30, 2010.  Although the $6,500 feature has been labeled the “move up” credit, there is nothing in the law forcing anybody to buy a bigger or costlier house.  You can downsize or upsize and still get the credit.
Read the FULL article here…