Eureka. President Obama signed today the Extended Home Buyer Tax Credit legislation approved yesterday by Congress.
- The $8,000 home buyer tax credit is extended to April 30th, 2010, with another 60-day extension for those home buyers who have entered into a purchase contract by April 30th, providing it closes by June 30, 2010.
- Buyers who are not first-time home buyers can apply to receive a tax credit of $6,500, providing these buyers have owned and occupied a principal residence for 5 out of the last 8 years.
- Income levels for those who buy a home on or after November 6, 2009 is raised to $125,000 for a single person and $225,000 for a couple, with phase-outs above those levels.
I wonder if some buyers will now cancel existing escrows because they felt pressured to buy before November 30th? Some buyers might have settled for a home they did not truly want or avoided trying to buy a short sale home based on the expected expiration date of November 30th . . . read more about the Extended Home Buyer Tax Credit.
©Big Stock Photo
Technorati tag: Extended Home Buyer Tax Credit
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Comments
I have found that our clients for our Australian Buyers Agents have also had to compete with many other first home buyers due to the government incentives for Australian First Home Buyers.
Hello Pino: I understand the Australian home buyer tax credit has no income limitations. While it’s nice that President Obama’s extension lets move up buyers, subject to criteria, participate in the program, the income restrictions aren’t high enough to stimulate the upper-end market.
My question is, If the situation is I bought a house with my husband in 2005 in SC. However, I haven’t lived there since June 2008 due to divorce. I moved back to TN at that time. Would I be able to qualify for any credit once my name is off the mortgage in SC?
Probably not because to qualify under the “first-time” rule, you can’t have owned a home for at least 3 years. For a second-time buyer, you have to live in your present home for 5 years out of the last eight. For more information, please talk to an accountant.
Regarding the existing home owner credit: can I still apply for it if I buy my new house before selling my old house?
I didn’t see anything in the law that says you have to sell your former home. And it does apply to second homes.
We lived in our first home from June 2002 until September 30, 2009. We signed a contract with our builder in June of 2009, but our new house will not be completed until December 1st. We had to move in with family for the months of October and November. We are within the income limits. Do we qualify for the tax credit?
That’s a good question. The law says you have to live in your previous home for 5 out of the last 8 years, so you qualify on that part. But I believe your contract needs to be dated after 11/6/09 to qualify. Plus, you would not get the $8,000 but instead you’d probably qualify for the $6,500 credit. You should check with your accountant to see if you rewrote the contract if that would qualify.
I think it does apply to second homes. It still qualify for the tax credit.
I bought a home Nov. 6th 2009. Do I qualify for the new tax break? I have heard no and yes. Can you help me.
Thanks, Judd Eidson
This IRS publication makes it look like it’s for homes that were purchased AFTER November 6, if you’re looking for the $6,500 credit. For the $8,000 credit, it doesn’t matter.
http://www.irs.gov/newsroom/article/0,,id=204671,00.html
We bought in Feb 2003. Short sold in Jan 2008. Subprime casualty. Been renting for almost 2 years. Paid off debt. Been good citizens. Trying to get back in. It seems both of these tax credits will elude us, correct? Not enough time past to qualify for the FHA, but we are 30 days short of qualifying for the stipulation of the 2nd time credit. Seems like there’s help for everyone but us. Am I missing something?
It sure looks like it, I’m sorry to say, since you don’t have the full 5 years of occupancy. And if you go conventional, after waiting 2 years, the down payment requirements will most likely be around 10%.
We bought a house in june 2006, and we foreclosed on it in june 2009 but we were able to buy another cheaper home in Febr. 2009 with one of our names, since the house we foreclosed was only under my husbands name. I was able to buy our recent house under my name. So my question is, Do I qualify for any of this tax credits? note, the house foreclosed on was in my name during the year 2006-2007, then it was changed and refinance under my husbands name only. and it was foreclosed under his name.. any help?
Probably not because you have owned a home in the last 3 years.
my question is do you have to make above 225,000 a year for couples to get the 6500 tax credit on a second home?
You need to make less than that.
what happens to the credit if you bought a house on nov 6
I recently purchased a home and the closing was held on November 6th. Do I qualify? I’ve been told yes because I didn’t occupy the home until Nov. 7th but I have also been told no due to not being after November 6th. ????
I know I’m eligible for one of these credits, I bought my place in March 2008 and I am a first time home buyer please let me know what is coming to me. Mahalo.
Justin: You may qualify for the $8,000 first time home buyer tax credit but not the second home buyer tax credit.
Kuu: You do not qualify for either of them, nor the 2008 tax credit because the 2008 applies to homes purchased on or after April 9th, 2008.
I bought julay 2006 and now i am going to buy another becose the frist one is very small ( my family size is incrse so can i qualify for the $6,500 tax
Probably not because one of the requirements is you have to have owned a home for 5 of the past 8 years. If you bought in July of ‘06, you haven’t owned it for 5 years.
I was Mobalized for the War on Terror Feb of 2006 We could no longer afford our home and while I was serving in Kuwait my wife pat sold it. I returned home in Nov 2006 and in 2007 bought a home. Having no VA Hospital near by “Hurricane Katrina destroyed the nearest one in New Orleans” We sold in March 2009 and purchased a home in South Carolina near a VA Hospital in Aug. 2009. I purchased it using the GI Bill and had to pay $4,800 in points. I have never Qualified for faverable treatment on any Mortgage I’ve ever gotten. Did we loose out again?
Thank You: Allen
To qualify for the first-time home buyer credit, you must not have owned a home in the past 3 years. Because you sold in 2007, you probably do not qualify. But there are some exceptions for military service, so you should check with your accountant.
We purchased our first house in 2001 and sold it in Nov 2008 when we purchased our 2nd home. Would we qualify or would do you have to purchase in 2009?
There was no tax credit for move up buyers in 2008, so no. Sorry. If only you had held off another year.
Sold home we owned for 6 years in September 2009-closed on new home 2 days later. Wife is currently layed off and was layed off at time of sell and purchase. Make under 125,000 a year. Married four kids. Bill was not enacted till after September 2009. If i dont recieve 6500 because bill is not retroactive. Then with all this stimulas stuff going on when filing taxes for 2009 do I recieve anything for upgrading to a home thats under $800,000 and selling a home that I lived in for over five years?
I know it’s hard to imagine but most likely not. That move-up buyer tax credit is not retroactive, and you don’t qualify for the first-time home buyer guidelines. I am sorry.
Its not your fault. Thanks for the quick response. Im just happy with the economy the way it is Ive been blessed enough to put my family in a better home and in better schools. With free money being thrown everywhere it would have been nice for my kids to have benefited from it. Since there the ones who will have to deal with the cosequences when there my age trying to provide for their families. Thanks again.
I bought a condo in 2007, and then bought a 2nd home in August 2009. I never sold the first condo – I’m renting it out. Do I qualify for the $6500 tax credit?
Hi Dan: Probably not because a) you did not live in the condo for 5 years and b) you closed before the move-up buyer credit was approved.
I owned a mobil home from 2000 to march 2009 which at this time I bought a home so will I qualify for the second time home buyers tax credit?
Sorry, no, because you did not buy after November 6.
We bought our house in February of 05′ from family, we lived here for a year and a half prior. We are unfortunately in the middle of foreclosure, and have to move in April. Will we qualify for the $6500 credit? Also, will this qualify on a Land Contract? since this is the only way we can hold the home until we build our credit back.
It would appear that if you can hang on to your pre-foreclosure through February, then you’d have your 5 years of residence. The problem will be finding financing after a foreclosure. The minimum wait is 3 years for conventional with circumstances and 5 without. FHA will do 3. As for a land contract, that is certainly a possibility, but many sellers want a substantial down payment. If a potential seller runs your credit report and sees the foreclosure, though . . .
We are losing our home because of health issues, job changes, and reduced work due to poor health. We tried a loan mod through an atty, but it was a joke. -$200 for a trial period, but have to resubmit everything again. The lawyer said to give up. We are going to declare BK. We signed a contract the other night for a lovely mobile home that the owner will carry the note on, and we will get it paid off in 5 years. Can we get the $6500 tax credit. We’ve lived here 7 years without interruption. Please advise.
I’m sorry to hear of your difficulties. Have you thought about trying to do a short sale instead of filing BK?
The silver lining in all of this is you probably do qualify for the $6,500. You don’t have to sell an existing home to qualify.
I purchased a home in June 2009. This is my first home purchased where I secured the financing, and provided down payment.
However, two years ago my father put me on the deed to his house, and now according to IRS, I’m not a 1st time buyer. Is that correct or is there something I am missing or what should I do to be able to claim the first time buyer’s credit?
IRS guidelines say you would probably qualify for the tax credit if you did not live in your father’s home. Here is an excerpt:
Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
I am a homebuyer who would qualify for the second-time credit except that I closed on my new house on October 20, 2009. Any rumblings of the government making this offer retroactive to an earlier date?
Sorry, Pam. It’s very unlikely to change. I know you must feel terrible that you missed a government hand-out of $6,500.
I bought my home in 2005, I was the only one on the loan. My husband was added to the loan when we refinanced it summer 2009. Do we qualify for the credit.
That’s a good question. The IRS web site says $6,500 is the total credit for move-up buyers, but both parties have to have owned the home for at least 5 years, so it’s possible you’d only qualify for half of that credit. You should check with your tax accountant.
Hi,
This is very confusing to me how. Can some please let me know if we qualify for any tax credit…
My wife and I purchased our first home in March 2007. We’ve never received any tax credit. What do we we qualify for if any? Thanks
There was no tax credit in 2007. Home buyers in 2007 bought a home, like anybody else, and hoped the value would not fall.
My husband and I owned a home that ended in foreclosure. I am not certain of the forclosure date. We moved out and rented a home since Oct. 2006. Since our primary residence was a rental property since Oct. 2006 would we qualify for the first time home buyer credit?
I think our home was foreclosed on anytime between Jan. 2007 and Apr. 2007. So, even though our primary residence (have contract to prove it) was a rental for over 3 years if the house that was foreclosed on was not taken over by the bank until April 2007 and we bought a new home Jan 2010 can we get the tax credit?
If you haven’t owned a home for 3 full years, you would qualify for the first-time home buyer tax credit. You should check with an accountant to make certain your dates align.
PLEASE HELP! I NEED CLARIFICATION… IT IS MY UNDERSTANDING THAT I QUALIFY FOR THE SECOND HOME TAX CREDIT. I PURCHASE MY FIRST HOME IN DEC 2002. (I STILL OWNED THIS HOME) I PURCHASED A SECOND HOME IN APR 2006 IN ANOTHER STATE. I USED THE SECOND HOME AS MY PRIMARY HOME.. PLEASE LET ME KNOW IF I QUALIFY FOR THE $6500 TAX CREDIT.
Since you haven’t lived in your second home for 5 years yet, you probably do not qualify for the $6,500 credit.
SO HELP ME UNDERSTAND.. I HAVE TO BE LIVING IN MY SECOND HOME FOR 5 YEARS? OR OWN A HOME FOR 5 YEARS BEFORE BUYING A SECOND HOME.
You have to live in your primary residence for 5 out of 8 years.
I recently purchased a second home, but still own my first home. I was not in my first home for 5 years so I don’t think I qualify for the second time buyer credit, but I was wondering if my husband does? He was not on the loan or the title of our first house, and is not on the loan, but on the title of our second house….
Probably not because you have not lived in your second home for 5 years. Because your husband is on title, he most likely doesn’t qualify for the first-time home buyer tax credit. For more information, please talk to an accountant.
We owned and lived in a house for 4.5 years and it was 2 years ago, I cannot believe we are “this close” to EITHER tax credit, IS there ANYTHING else out there, it just doesn’t seem fair that we were responsible home buyers and are looking to purchase again this month and we get nothing?
I know; it sucks. I’m sorry.
I owned and lived in my home for the past 7 years. in October 2008 I got married, my husband moved to US in June of 2009. I purchased a second home on 1/14/10 (mortgage is in my name). Separately, we qualify: I for $6,500 and he for $8,000. However, how does this impact us since we are married and file a joint tax return? He has not owned and lived in our house for 5 years, since he just became a US resident 7 months ago.
I believe you qualify for 1/2 of the $6,500 and your husband gets 1/2 of $8,000, but you should verify this with your accountant because I can’t give tax advice.
If we refinanced our home in 2009 after living in it for 5 years, do we qualify for the $6500 tax credit?
How much you owe has no bearing on the home buyer tax credit of $6,500.
PLEASE HELP! I WANTED TO KNOW IF I QUALIFY FOR EITHER TAX CREDIT. I PURCHASE 2 HOMES. ONE IN 2002 AND THE OTHER IN 2006 IN A DIFFERENT STATE. I STILL OWN BOTH HOMES. DO I QUALIFY?
You could possibly qualify for the first home if you still live there or have lived there 5 out of the last 8 years. But if you rented out the 2002 home and moved into the 2006 home, probably not, because then the 2006 home would be your residence, and you would not meet the 5 out of 8 rule. You should check with an accountant because I can’t give you tax advice.
NO I HAVEN’T RENTED OUT THE 2002 HOME. I WORK IN THE STATE I PURCHASE THE NEW HOME IN 2006.. AND I NORMALLY GO HOME TO THE 2002 HOME ALMOST EVERY WEEKEND.
It’s quite possible that the 2006 home would be your primary residence and the 2002 home might qualify as a second home, even though you bought it first. That’s why you need to seek the opinion of a person qualified to give tax advice.
If the 2006 home is your residence, then you probably will not qualify for the home buyer tax credit.
we lived in our mobile home for over 15 years had a fire lost everything we closed on our house on April 16,2008 we didnt get first time home buyer since it was a was a mobile home (i guess that is considered a home even though it has a title like a car no deed so wondering if we qualify for the second time home buyer credit. when we bought our home in 2008 we did get the first time home buyer credit thorugh mortage company but not 1st time home buyer credit for tax purposes thanks
You should call your accountant to see if you qualify to amend your tax return because you might possibly qualify for the 2008 $7,500 tax credit. This is not really a credit but an interest-free loan, payable over 15 years.
bought house in 1999. still own and live in it. bought 2nd house in sept. 2009. haven’t moved in but will in spring of this year. do i qualify for the tax credit.
If you meet the other criteria, Frank, it looks like you qualify!
DO I QUALIFY FOR THE $6500 TAX CREDIT IF I REFINANCE MY SECOND HOME IN 2008.
The mortgage, whether original or refinanced, does not affect whether you qualify for the home buyer tax credit.
HI,we bought condo in april 01 2005 , we still own and live in it.We bought new house and closing date is in april this year.Dose it days matters if we sell 1st place before date of purchased?Do we still qualify for $6500 tax credit?Thank you!
The five-year rule applies — you need to live in your residence for 5 out of the last 8 years, so it must be a full 5 years. It doesn’t matter whether you still own the first home or not. However, there are other qualifications.
Hi, my husband and I bought a townhouse in August of 2005. We are now under contract to purchase a different home, which we will use as our primary residence. Am I correct in assuming that we do not qualify for the tax credit ($6500), because we have not QUITE lived in our current home for 5 years? Does it have to be the SAME home for all 5 years? We owned a different home before the August 2005 townhouse purchase. Thanks, Christine
You are correct in your assumption. 5 years in your residence.
I owned a home for 15 years. Sold the home the end of March 2009. I lived with family until January 25, 2010. I just purchased a mobile home on this date. Do I qualify for the second home tax credit?
I can show proof of 5 years ownership through the property taxes which is requested on the IRS form since the 1st home has not been assessed to the new owner.
I owned a singlewide mobile home from 1993 and sold it after buying a new house and closing May 30 2009. Do I qualify for the first time home buyer tax credit?
It looks like you meet the 5 out of 8 rule. If your income falls within the guidelines, you probably qualify!
Sorry, if you owned a home and sold prior to November 6, you do not qualify for the first-time home buyer tax credit.
do homes purchased on a land contract qualify?
The financing of a home is not relevant to the first-time home buyer credit. Although a land contract gives a buyer equitable title, it’s still title to the property.
We have lived in our home for 15 years and refinanced it in december of 2009. Does this qualify for the $6,500 rebate? What if it was refinanced as a home equity loan?
Doesn’t matter what type of loan you have or whether you have refinanced. If you meet the income qualifications and have lived in your home for 5 out of the last 8 years, you should be able to qualify for the $6,500 buyer tax credit.
My mother lived in her previous home for 25 years. She recently purchased a new home in late August early September of 2009. Can she still apply for to recieve $6,500 even though she purchase before November. Were can I find the eight rules?
P.S. She also sold her first home around the same time she purchase her new home.
Hello Kevin: Your mother bought before the change in the law in November, so she doesn’t qualify. You can read more about the home buyer tax credit by clicking on the link in this blog.
My wife bought a home in 2004 as her primary residence. We got married in 2006 and I was never added to the title or mortgage. We have since bought a second home after Nov 6th. It would be my first home purchase and her second. We are both on the deed and the mortgage for the second home. What do we qualify for?
Hello James: You should check with your accountant, but I wouldn’t be surprised if you qualified for 1/2 of the first-time home buyer tax credit and your wife qualified for 1/2 of the move-up buyer tax credit.
Please clarify.I saw couple of questions on second home but still not clear,whether it applies to my case or not.
-I brought my first home in Dec 2002.This is my primary residence and living here since then.
-I am planning to close my second home in March-2010
-I have no plans to sell my First home and will be continue to stay in that.
-My daughter who is in college will be staying in the second home
-I have no plans to sell my primary residence.
-I am US citizen
Will I qualify for $6500 tax credit?
Probably not because you won’t be living there, but you should verify that with your accountant.
I am a Department of Army civilian on orders to work/serve our country overseas. I am renting my home while serving overseas. I refinanced my home on 22 Jan 2009 in effort to drop my payments from a 30 year loan plan to a 15 year payment plan. Will/Do I qualify for any type of tax credit under the Obama Housing Tax Credit benefits?
Sorry, Gregory, not that I am aware of. The first-time home buyer tax credit and move-up buyer tax credit are for buying a home, not for refinancing.
Elizabeth, thank you for your knowledge and insight concerning this issue… the additional credit would have been nice!
After three years living in my first home I sold it in 2008. Then I bought my second house in June 2009, and refinanced it in December 2009. Do I qualify for $6500 tax credit ?
It doesn’t look like you qualify for the first-time home buyer tax credit because you have owned a home in the past 3 years, having sold in 2008. And you probably don’t qualify for the move-up buyer tax credit because you bought the new home before November 6, 2009. Refinancing has no bearing on the tax credit.
Me and my wife bought a home in 2002 which we still occupy. Are we eligible for the tax credit for $8000?
No, but you may qualify for the move-up home buyer tax credit of $6,500 if you meet the income requirements. See the link in the blog post for more information.
My husband and I closed on our house on July 1, 2005 and have lived in it since then. Do we qualify for the move-up home buyer tax credit?
Probably not because you will have missed it by one day. Unless the term is extended by President Obama, the home buyer tax credit, both first-time and move-up, goes away on June 30. You need to be in contract by April 30th and close by June 30th, which would leave you one day short for a 5-year occupancy requirement.
I lived in my first home for 22 years sold closed on 7/31/2009 bought my second home 6/1/2009
Am I eligible for the 6500 tax credit?
Unfortunately, no, because the move-up buyer tax credit was signed into law and effective on November 6, 2009.
My fiancee and I are buying a house but she already has a house and is using that as a rental. She lived in it for 5 years and will change her primary to the new house. Since she already has an FHA, she was not allowed to have another. Is there anyway to put her name on the house and get the credit without putting her on the mortgage? Thanks
Hi Brandon: You are correct. A buyer can have only one FHA loan. Some of my buyers in this situation add themselves to title after the escrow closes.
Would that qualify her for the tax credit?
Thanks again
You may want to check with your accountant as to how she is added to title, but buying a move up home, providing she meets the income requirements and has lived in her present home for 5 out of the past 8 years, should qualify her.
I bought my first home in October 07 and in March 09 we refinanced and added my wife to the mortgage. This is her first home also. Would we qualify for half of the $8000 tax credit?
That’s a darned good question, Wade. I can’t find the answer on the IRS website. I know that you do not qualify for the first-time home buyer tax credit, nor do you qualify for the 2008 tax credit (which is really a loan) because you bought in ‘07. I would suspect that the IRS would want to see money change hands, and your wife was probably already living in the home when title was updated, but this is a question that you might want to get answered by calling the IRS directly and asking. A qualified CPA should be able to answer this as well. I’m not an accountant and, as a licensed real estate broker, cannot give tax advice.
I meet all the qualifications for the 2nd time home buyer except I closed on Nov.5th, not Nov. 6th. Does that disqualify me from the $6,500 tax credit?
Hello Gene:
Ouch. It would certainly appear that you were a day too early.
we have lived in our house for 14 years and just bought a second home in January. Not sure yet whether it will become a primary or just part time residence as yet. Can we claim the $6500 tax credit?
I believe the IRS says the home you buy must be your personal residence to qualify for the home buyer tax credit, but you should double check that with a tax accountant.
I closed on a second property on 10/26/09. Does this mean I am not eligible for the non-first time home buyers credit because I bought 12 days before November 6? Is there anyway to appeal this if it is true?
You can try to appeal but it might not hold any water because the new law wasn’t signed and made effective until after you closed on your new home. Funny thing about the way laws work. They tend to stick to dates. If you operate outside of those dates, the law generally doesn’t apply.
I sold my co-op in May 2009 that owned for over 5 years, then moved into my investment property while it was vacant. I intend to purchase a new primary residence in a few weeks. Will I qualify for the $6500 tax credit?
The move-up buyer tax credit went into effect on November 6, 2009. It’s not retroactive.
I bought a home summer of 2004 and lived in it until September of 2009. I still own the home but have been renting it out since October 1, 2009. My new 2nd home is closing March 30th. Do I qualify for the $6500 tax credit?
Looks like you meet the 5 year occupancy rule.
I got home in 2001 lived till march 11 2009 got new home August same year do we qualify for any of tax
Only homes purchased on or after January 1, 2009 and before June 30, 2010 qualify for the first time home buyer tax credit. The move-up tax credit is for homes bought after November 6, 2009, so it appears as though you do not qualify for the move up credit, and you are not a first-time home buyer. For more information, please ask your tax accountant.
You CAN get a Second Time Home Buyer Credit if you bought a home in 2009. This applies to 2009 Tax Return. Period. Don’t be duped otherwise!
I’m afraid you are mistaken, Phil. The second-time home buyer tax credit applies ONLY to homes purchased between Nov. 7 and the end of April 2010, which close by June 30th.
I have owned a home for 7 years but, I receive social security and don’t file taxes I am 71 can i get the 6500.00 another way
You would need to file a tax return. I am also not certain that you would receive the credit if it wasn’t offset by taxes, so you should ask your accountant that question.
Elizabeth, thanks for all the comments, this is very helpful.
We bought a condo as primary residence in Sep,09. It was already rented when we bought and the lease expires in June,10. So, we never lived there but we have figured that it’s not the right place for us as this is a 3 story condo and our parents cannot walk up and down the stairs. So, talked to the lender and converted this to investment/rental.
We are in the process of buying another house as primary residence. Are we eligible for tax credit since we never lived in the house we bought last year and we are buying the new house as primary?
We have been living in a rented apartment for a long time.
Hello Kris: To qualify as a first-time home buyer, it must be your personal residence, so it would appear that you may qualify. Of course, you would want to verify this with your tax accountant as tax laws are updated and amended all the time.
We have lived in our home since 1994 and in April of 2009 bought another home in another state. I am currently spending the majority of my time at that residence, with my husband staying at our first residence with the children for schooling purposes. Would we qualify for any sort of tax credit in this situation?
I’m sorry but the answer is no.
I have a rather complicated one. I owned a home from 1997-2005. I sold that home in August 2005 and bought another one the same month due to a move. I lived in that house until August 2006 and sold it and bought again the same month. I have owned my current house from August 2006 until now. If I were to sell my current house and buy another one would I qualify for the 6500 credit?
Probably not, Dean, because you haven’t lived in your present home for 5 years.
I bought my previous house in June 2000 and sold it May of 2007. I just closed on another house this month. Would I qualify for the 6500.00 credit?
Most likely not, Anthony, because the move-up buyer tax credit of $6,500 is effective as of November 6, 2009, and you sold your home before that date.
I bought a house in March 2004 sold it in March 2008 and have been renting since then. I am not sure if I can qualify for any tax credit.
Hi Pagie: Unfortunately, you have to actually buy a house to qualify for the home buyer tax credit.
Oh I guess I left out that we are in the process of buying a home and are closing next week. So are you saying that we might be able to get a tax credit?
Probably not because you didn’t live in your previous home for 5 years and have owned a home in the past 3 years.
I’m confused so here is my questions – I have lived in my current home since 2002 and my Husband (married in Sept 2009) lived in his home from 2003 till Sept when he sold it, I am refinancing my home to put him on the mortgage and to lower payments. Does my Husband qualify for the 6500 tax credit? Thank you
Probably not but you should verify this with an accountant.
Is it true that since we bought our new home from my husband’s parents (closed Nov 2009), we don’t qualify for this tax credit? To be quite honest, we were really relying on that money.
If the answer is yes, why?
Also, do we have any recourse with the IRS?
Probably because it was not an “arm’s length” sale.
Can you claim a second home brought in 2010 if your first home was destroyed by Hurricane Ike in 2008. Closed on the second home March 2010, lived in the first home for 7 years.
If you meet the income requirements, yes, Sheila. You will probably qualify for the move-up home buyer tax credit of $6,500.
Hi, I. Bought a house July 18th 2003 and live in it for over a year before that. I still own it and bought another house just a bigger one July 3rd 2008. Do you think I still qualify for any tax credit ?
Sorry, probably not because you bought your new home before November 6, 2009.
Recently I went to a tax professional that stated that I could receive the $8000 even though I purchased my first home in December of 2006. Is this true?
To qualify for the first-time home buyer tax credit of $8,000, you can’t have owned a home in the past 3 years. If you sold your home in December of 2006, then you have not owned a home in the past 3 years. If you still own that home, you don’t qualify, nor would you meet the rules for the move-up tax credit.
Hi – We lost our primary residence in Hurricane katrina – we owned that property from February 2000 through June 2006 (living in it until the levees broke in August 2005). We bought another home in October 2005 (cause our flood damaged property was uninhabitable) and have a contract for sale to close on this property in mid-may 2010. We are buying a new home to return to Louisiana closing late May 2010. Are we eligible for this tax credit? Thanks in advance!
Doesn’t look like you’ve got 5 years under your belt with that home you bought on a contract for sale. If you could just hang tight until October, that would give you 5 years.
If I closed on November 2nd 2009 but my deed wasnt recorded until November 13th 2009, would I qualify for the $6500 credit? All of the major websites state that my house was sold on Nov 13th and I contacted me real estate attorney and she said it was worth looking into.
I agree. You should try it.
I have lived in my home 100% of the time since 1999. I own some land and wish to purchase a mobile home to place on the land to have as a second home (a place to which to evacuate and for vacations). Would I qualify for the 2nd home buyers credit?
The government says mobile homes are included.
If I buy a house in 2002 then buy another one in 2008, and refinance it in 2009 do I get a second home buyer tax credit?
Sorry, no.
Hi-
I sold my home Nov. 11th 2007 and have been renting ever since. I occupied that home from 1998-2007 would I qualify for the $6500 tax credit?
My husband owed a home since 1995, he and I bought a new home Sept. 30th 2009. We were not able to move in to new home until Dec. 2009 because of repairs that needed to be done. Do we qualify for the $6500 tax break?
Possibly, Jen. The rule is you must occupy your residence for 5 out of the last 8 years. You should check with your accountant.
Probably not, Millie, because you did not close escrow after November 6.
We bought our second home in June 2009 after 6 years of prior residence in our first home. Will we qualify for the 2nd time credit
I hate to say this, but the Act signed by President Obama for second-time home buyers to get the move-up tax credit is effective on November 6, 2009. You closed before that date.
My wife and I purchased a home in October 2006. We divorced two years later and I refinanced the home in my name only in 2008. This was our 1st and only home. Do I receive any tax credit?
Sorry but the answer is no. If you lived in your present home for 5 out of the last 8 years and bought a new home, you may qualify for the move-up home buyer tax credit, but that doesn’t apply in your case.
Military members get the short end of this tax credit. We are hardly ever in one location for more than 5 years. Don’t qualify for the first time home buyers or the long time resident tax credit. So unfair.
Military members don’t necessarily get the short end of the stick. Actually, members of the military serving outside of the U.S. have an extra year to get the home buyer tax credit and are excluded from having to repay it if transferred. See this link for more information:
http://www.irs.gov/newsroom/article/0,,id=215594,00.html
I own a home that I inherited from my father this year. I sold it almost immediately and will be purchasing a home with the proceeds from the sale. I have been renting for the last 3 years. If I purchase a home now, will I be eligible for any type of credit?
The IRS says you cannot have owned a home in the past 3 years to be considered a first-time home buyer. You should ask your accountant if your situation warrants an exemption.
I was wondering if the first time home owners will be extended again even though the April 30 deadline has passed. There are still several homes in my location for sale but limited many to the need a handyman touch and the rush to buy homes that were move in ready did not leave the better homes on the market available without a contract placed or offer for an extended amount of time. As I continue to look I see many homes that are starting into the short sale market but again this I have heard takes months to be finalized and many times the price is escalated before the closing. With myself a single person my time from work was limited and then to buy a fixer up house will add additional cost that for many will cause an added burden. I was taken to homes that would have used up the maximum amount of the 8000 dollars and that was not going to be the final cost of the home in repairs. Then the move in ready was snatched like hot potatoes. I was just was hoping for an extension again to be passed.
The federal home buyer tax credit is over, unless you’re already in escrow and waiting to close prior to June 30th. I have not heard any rumors about an extension. However, if you’re lucky enough to live in California, this state has a California home buyer tax credit. The funds are limited, though, and about to run out.
we bought a house in oct. 1997 and sold it june 1 2010 we are looking to buy our second home do we qualify and if yes how do we sign up?
I’m sorry but you would have had to buy that second home before April 30th and close by September 30th. So it’s too late now. The Senate just passed the extension to 9/30 but you would have had to have been in contract by April 30th.
Hi Elizabeth,
I have a vacation/secondary home in India and I claimed tax benefits for the interest I pay there for years 2007 and 2008. I purchased my primary home in USA on March 2 2010. Am I eligible to get $8000 tax benefit.
Home purchased in USA in march 2010 is my primary home and this is my fist primary home. I will appreciate you comments for my query.
regards
I am fairly certain that US law was devised to apply to US property. But you could call the IRS and ask.
Married in 1996 and moved into husbands home. My name was never added to the deed. Seperated Oct 1 2006. I closed on a house 11/12/2009. Still only legal separation. Do I qualify for the $6500 credit?
If you’ve never owned a home, you might qualify as a first-time home buyer. However, your marital status might have a bearing on the amount you can claim. I really do not know, but your accountant would.
I have owned rental property since 1986 but not a primary residence. I thought since I was married the house my husband owned disqualified me for 1st time homebuyer.
We tried to buy a house on land contract in Dec 2007. We lived in the house for 2 years and claimed property taxes and mortgage on our taxes during this time. The owner took the house back in March of 2010 claiming they wanted more money. The seller never recorded the deed. Nothing was official. In May of 2010 … we decided to purchase a new home. We signed a legal binding contract on a home May of 2010 and closed on our home on June 4th 2010. Does this ruin our chances of being eligible for the 1st time home buyers $8000 credit?
Probably, Lynn, because one of the qualifications is you would have had to have been in contract by April 30th, and you weren’t. You bought in May. Sorry.
So sorry … I mean we were in contract on April 22nd and closed on June 5th. My question more referred to the land contract issue of 2 years prior.
Well, the IRS might ask if you were lying then or lying now. It’s kinda difficult to claim on your taxes that you owned a house for several years and then say you didn’t. You might want to ask an accountant about amending your returns for those years. And even then there’s no guarantee you would get the credit, not to mention, it might not be financially feasible.
Of course, we weren’t lying then or now. We had every intention of buying the house but the owner of the house refused to fulfill his end of the contract. We feel we were deceived for 2 years by this man. How does that affect the IRS? We do have a tax business prepare our taxes every year because my husband is a Pastor and they are very complicated.
Is there any talk for about a credit for short term homeowners? Less than the 5 years required now?
None that I have heard. Sorry.
What number can I call to inquire about the tax credit?
Go here:
http://www.irs.gov/localcontacts/index.html
hi is it true that they are suppose to be extending the 8,000 tax credit for first time home buyers because i heard that on the news. im not talking about the extension for sept.30, 2010. im about to purchase a home in august and also if they do extend it would i be available for the first time home buyer tax credit
The extension to 9/30 is for buyers who were in contract by April 30th. So if you bought a home in August, you would not qualify — unless, of course, you are active military.
i purchase a house as first time homebuyer march 2008.am i qualified for a tax credit ? what if i only lived for about 2 years and 4 months and my house was foreclosed and taken over by the bank? What will be my situation?
Hi Celso: Unfortunately, the 2008 tax credit did not go into play until after you bought your home, and it wasn’t really a tax credit anyway. I’m sorry that you lost your home.
my souse and i brought our home in 2005 we never claim the frist time credit can we still do so
Hello April: Unfortunately, there was no home buyer tax credit in 2005, so the answer is no. I’m sorry.
Trying to figure out if we qualify for the credit. We lived in our home for over 5 yrs then we started building aur home our selves withough a contractor or mortgage just “our selves” in 2007 and moved in September of 2009. Would we qualify for the credit? We rent our previous home.
This home buyer tax credit applies to buying a home, with certain conditions.
I”m in the military…bought a house in Oct ‘04, sold in Oct ‘07…orders to Europe for just over 2 years..came back to the states and bought in Jan ‘10. I understand the three year rule, would I qualify for the replacement plan?
Hello, we bought our condo in 2002 and bought our home in Oct of 2009. During this same year we sold our condo. When we filed for 2009 taxes we were told that we were not eligible for the second time home buyer credit – is this true? In addition, the money that was credit from the sale of the condo was used to pay the loan we used for the deposit for our 2nd home. Our tax preparer never inlcuded this in our taxes – should this have been inlcuded?
You might want to ask your accountant why you do not qualify for the move-up tax credit because it would seem that you do. Maybe your accountant is confusing the first-time home buyer credit with the move-up home buyer tax credit? It’s worth asking about.
I’m confused?? We owned and lived in a mobile home we purchased in 1986..We purchased a new home Sept. 2005..we have lived in since Sept 2005.. we refianced Dec. 2010..Do we qualify for either home buyer credit? Thanks
My situation is similar to Michaels…
We purchased a home in Aug.03, then got orders for Germany in Feb.07. We have since been renting out our home. We returned to the states and purchased a new home in Aug.10′. I know there are exceptions for military but it can be confusing since we obviously didn’t live in our home for 5 years, nor do most people in the military. Can we get the credit??
Here is what the IRS website says about those in the military and qualifying for the homebuyer tax credit:
“Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.”
I bought a 30 foot motorhome, march of 2009. I have lived in
My primary home for 19 years. Do I qualify for the 6500 credit?
Do you live in it? Then probably. You should check with your accountant. There is also a maximum based on price.
We where living in our first house from 2000 to 2007. In May 2007 we sold this house ad purchased a new house. In April 2010 we purchased a other house and are renting the house we bought in 2007.
We lived 5 out of 8 years in the first home. Do we qualify for the $6500 tax credit?
My personal take would be probably not because the first house doesn’t count. Please verify with your accountant, though.
i own a house for 5years. Am in the military and we hardly ever in one location. Do i still qualify for the tax credit.
I’m sorry but you have to buy a home to get a tax credit, not just own a home for 5 years. Did you buy a home in 2010?
I owned a home from 1995-2007 with my wife.. After our separation in 2006. I quick deeded the house in June of 2007 and purchased a home for my kids and I in february 2009. Do I qualify for a 2nd time credit
You should check with your accountant. Because you were a co-owner, it’s possible you won’t qualify, not to mention, it was not your principal residence. Only principal residences qualify.
My now husband purchased a home in August 1998 We Both lived in the home until August 2006. We moved to another property in Feb 2007 that he owned. We signed a contract to build Before April 30th of 2010 and closed on the property August 2010. Are we able to receive the tax buyer credit. I have not been on a deed or mortgage since 2003. Thanks
You have a strange situation in that only one of you has not owned a home recently. You should speak with your tax accountant because I can’t give tax advice; sorry.
I forgot to mention that I purchased the new home and added my husband to the deed.
Thanks