Tax Credit Not Just For First Time Buyers

You may have heard of the federal government's First Time Buyer tax credit, but did you know that the government also has a tax credit for current homeowners looking to buy another home?  "Move-up" buyers can qualify for a $6,500 tax credit when they buy a new home (the First Time Credit is $8,000).

Here are some of the specifics about the move-up buyer credit:

1. To qualify a home owner must have occupied the same principal residence for five of the last eight years consecutively.
2. Buyers can elect to claim the credit on either their 2009 or their 2010 tax return, whichever is best for them. Although, buyers who claim the credit in 2009 can’t file electronically because the Internal Revenue Service hasn’t put the required forms on line. The wait for a refund is three or four months.
3. The home can’t be purchased from a close relative, including a parent, spouse, child, grandparent or grandchild.
4. A buyer who earns no taxable income or doesn’t owe any federal income tax can still qualify for the tax credit and file a tax return just to claim it.

To qualify for either the first time buyer or the move-up buyer tax credit one bust be in escrow by April 30th and close June 30th.