Moving Up to a Bigger Home? You May Qualify for the $6,500 Tax Credit

Many home buyers are not aware that a revised version of the "First-Time Homebuyer Credit" actually applies to repeat, or move-up buyers as well. This tax credit is a genuine gift from the IRS - a $6,500 credit that does not have to be repaid. Qualifying criteria are quite broad; if you meet the following then most likely you will pass the test:

• Have you owned and lived in the same home for five of the last 8 years?
  The five years must be consecutive, but you do not have to own the house today to qualify. For example, if you lived in the same home from 2002 through 2007, then you meet this criteria even if you've already sold that home.
• Is your income less than $125,000 annually, or $225,000 combined if you're married?
  The income figure used for this test is your 'Modified Adjusted Gross Income' - an IRS definition that can be found here.

A more comprehensive look at the credit and its qualifying criteria can be found in the following article on our home buyer blog:
Do I Qualify For The Home Buyer Tax Credit?.

Feel free to contact me directly with any specific questions.

Johnny Schiro, Broker
Icon Real Estate
The Woodlands, Texas

About the author

Johnny Schiro is a Houston Realtor and co-owner of Icon Real Estate — an independent residential brokerage in The Woodlands, Texas. Johnny writes mostly about local market trends, buying & selling strategies, and industry insight. Comments and feedback encouraged.

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