The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).
The $6,500 Tax Credit for existing homeowners:
- The $6,500 tax credit is available for repeat buyers who have lived in their primary residence consecutively for five of the last eight years. Repeat buyers do not have to purchase a home that is more expensive than their previous home to receive the tax credit.
- The tax credit can be applied to the purchase of a new or existing home.
- The tax credit is equal to 10 percent of the purchase price of the home up to $6,500.
- The purchase price of the home must be $800,000 or less to qualify.
- The income limitations are less than $125,000 for an individual and less than $225,000, for joint filers.
- The tax credit is refundable and does not have to be paid back unless the homeowner sells the home within three years after purchase.
- Qualifying homes will be under a binding contract for purchase by April 30 and will have completed the sale by June 30.
