Who Qualifies For Move-Up Tax Credit?

When President Obama signed into law recently an extension of the first-time homebuyer tax credit (up to $8,000), another tax credit for existing homeowners was tacked on, but with a lot of conditions.

The first-time homebuyer is defined as not having owned a primary residence for the past 3 years. A move-up or repeat buyer is defined as a person who has owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase date.

Many real estate analysts have credited the first-time homebuyer incentive as a major impetus in home sales in 2009. Perhaps. But it's hard to imagine how "up to $6,500" in tax credit will be much incentive for people who can qualify for a second home. The tax credit is based on 10% of the home’s purchase price up to a maximum of $6,500. Any homes priced below $800,000 is eligible for the tax credit.

However, you cannot purchase a home from, among other family members, your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse or your spouse’s family members. Please consult with your tax advisor for more information. Also see IRS Form 5405.

To qualify, there is an income limit for single taxpayers is $125,000; $225,000 for married taxpayers filing a joint return. Partial credit may be available to those with higher modified adjusted gross income.

It seems to me that giving away this money continues to sap our coffers and has no positive effect on people and their communities. Between the looting of the Treasury, senseless wars, and bailouts of big businesses, insane amounts of taxpayer dollars have been thrown to unlikely and undeserving hands.

Making our money available to us through affordable and reasonable-to-get lines of credit -- that $42,000+ per man, woman and child stolen to bailout the banking industry (which gambled it away in derivitives, and continues those unregulated practices!) -- would go a long way toward giving small business what it needs to operate, and thereby stimulate the economy and innovation.

For more information on the Move-Up and Repeat Buyer tax credit, see http://www.federalhousingtaxcredit.com/faq2.php