Posted on: 05th Jun, 2010 02:58 am
Hi there… I had a property on which I stayed for more than 5 years and sold it off just before the new law regarding repeat buyers tax credit of $6,500 came into affect. Now I am looking to buy another property. Well, what I want to ask is that - will I qualify for the $6,500 tax credit?
Hi Garcia,
As far as I know the owner of an existing home who have been living there for 5 consecutive years, during the last eight years may qualify for a tax credit to buy another house which will be his primary residence.
As for the sold house, I am not much sure about the criteria. You can visit the IRS site for details.
Thanks,
Sandra
As far as I know the owner of an existing home who have been living there for 5 consecutive years, during the last eight years may qualify for a tax credit to buy another house which will be his primary residence.
As for the sold house, I am not much sure about the criteria. You can visit the IRS site for details.
Thanks,
Sandra
Hi Garcia,
Timing is everything when we are speaking about tax credits.
Though you've stayed in the property for 5 years within the last 8 years before you bought another principal residence, in the eyes of IRS, you bought the home too early. It should be noted here that in order to claim the $6,500 tax credit, the property should have been purchased after the new law came into effect i.e. after November 6th, 2010.
Take care.
Timing is everything when we are speaking about tax credits.
Though you've stayed in the property for 5 years within the last 8 years before you bought another principal residence, in the eyes of IRS, you bought the home too early. It should be noted here that in order to claim the $6,500 tax credit, the property should have been purchased after the new law came into effect i.e. after November 6th, 2010.
Take care.
Additionally, you would have to have the Purchase Contract for the new property by April 30, 2010 and close by June 30, 2010.
At this point you bcan not meet either of those requirements.
At this point you bcan not meet either of those requirements.
