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The $6,500 tax credit

Chris Farrell Nov 10, 2009

Question: I have a question about the recent federal tax credit for 1st time home buyer extension to cover move-up / repeat buyers.

All news and discussions talk about $6,500 for qualified move-up / repeat buyers. I moved from an old house to a new one in April. I lived in my old house for more than 5 years. Am I qualified for the credit? My realtor said yes but, when I checked the federal housing web site, it says only purchase after November 6 is qualified. I meet all qualifications except for my purchase date. Is there a date limit for the qualification??? Thanks, Joseph, Carrollton, TX

Answer: I don’t like it. The $6,500 tax credit has several twists and turns, including income limits. Here is a good review of all the rules.

Anyway, to your question: The $6,500 credit applies to 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). ” Sorry.

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