[RVRoadie]

Looks like this is going to become law soon.

If you have owned a home for the past five years and purchase a new one after the law goes into effect, you will be eligible for a $6,500 tax credit. Only bad new is that it will not be retroactive.

Here are some of the details reported in a newspaper:

The $6,500 home buyer tax credit applies only to people who have previously owned their homes for at least 5 years and are planning to purchase a new home by or before April 30, 2010. For those who previously owned a home and purchased another one this year, the tax credit will not apply. It won’t start until the bill is signed, and it is not retroactive. So if you closed on that new home today…sorry, you’re not getting anything from the government except the standard IRS refund based on your mortgage payments and property taxes.

[Army Guy]

The other catch is, it can not be a second home and there lies the catch 22. Most, like us, bought in TV first, then sell our other house. WRONG!!!! When you buy your TV house, it counts as a SECOND HOME cause you still own your first! In order to get it you must come from renting/lease not own.

Army Guy

[rshoffer]

There are also income limitations.

[73Goat]

Originally Posted by rshoffer

There are also income limitations.

Exactly, those of us that are 2nd class citizens because of our income will not qualify for the credit, like most credits offered by our benevolent government.

[TednRobin]

I have a question regarding the $6500 Credit. Does the home have to be a new home or can it be a resale? Also, am I understanding correctly that we would have to have already sold our home prior to buying. We have been back and forth over the last 3 years whether to buy in The Villages, the credit would certainly help us to make the decision.

[RVRoadie]

You will have to wait for the rules to be published by the IRS as to the timing of the sale/purchase. I would expect that they would allow for some overlap as a practicle matter, but you never know. If it like the first time homebuyers credit, it does not have to be a new home.

[TednRobin]

Originally Posted by RVRoadie

You will have to wait for the rules to be published by the IRS as to the timing of the sale/purchase. I would expect that they would allow for some overlap as a practicle matter, but you never know. If it like the first time homebuyers credit, it does not have to be a new home.

Thanks RVRoadie.

[kathy palermo]

The tax credit is not a total of $6,500. it cannot exceed 10% of the purchase price, same as the 1st time buyer for the $8,500. I read up
on it in a goverment site. I guess they do not tell you everything

Originally Posted by RVRoadie

Looks like this is going to become law soon.

If you have owned a home for the past five years and purchase a new one after the law goes into effect, you will be eligible for a $6,500 tax credit. Only bad new is that it will not be retroactive.

Here are some of the details reported in a newspaper:

The $6,500 home buyer tax credit applies only to people who have previously owned their homes for at least 5 years and are planning to purchase a new home by or before April 30, 2010. For those who previously owned a home and purchased another one this year, the tax credit will not apply. It won’t start until the bill is signed, and it is not retroactive. So if you closed on that new home today…sorry, you’re not getting anything from the government except the standard IRS refund based on your mortgage payments and property taxes.

[Whalen]

Originally Posted by 73Goat

Exactly, those of us that are 2nd class citizens because of our income will not qualify for the credit, like most credits offered by our benevolent government.

I would gladly give up the credit and consider myself a second class citizen to have an income of $250,000 ($125,000 for singles).

[ijusluvit]

YESSSSS!!!!!! I want to be a second class citizen too!!!!

Where's the sign-up line?

There it is!

Nope, that's the flu shot line.

[j22jay]

I would gladly give up the credit and consider myself a second class citizen to have an income of $250,000 ($125,000 for singles).

Me too ijusluvit and Whalen! Now exactly where is that sign-up line? Perhaps I should update my GPS??

[73Goat]

The issue I have is that, if the credit is intended to 'stimulate' the economy, what difference does it make what income level is eligible? I just have a philisophical issue with limiting incentives based on income.

[ijusluvit]

Originally Posted by 73Goat

The issue I have is that, if the credit is intended to 'stimulate' the economy, what difference does it make what income level is eligible? I just have a philisophical issue with limiting incentives based on income.

Consider that the ideal concept of "stimulus" is based on the funds being totally and swiftly put back into the domestic economy. The higher the wealth and income of the recipients, the greater the amount of stimulus funds that end up buying an island condo, Italian sports car or just sitting in some passive bank account. One of the big problems with economic recovery is that the largest banks are withholding billions of dollars from the economy. Some may think this sounds like smart business on their part, but in reality that money was formerly paying the wages of most of the current millions of unemployed, who now cannot further stimulate the economy with their purchases, and must increasingly rely on public funds to survive.

[TomW]

The credit may be the tipping point for us. I'll want to see what the 11/15 TV price increase for new construction amounts to since I don't intend to buy in the next 3 days. APR at Citizens First WAS running 5.2% which is a little higher than the national average. We'll see.

[bardenbob]

Originally Posted by Army Guy

The other catch is, it can not be a second home and there lies the catch 22. Most, like us, bought in TV first, then sell our other house. WRONG!!!! When you buy your TV house, it counts as a SECOND HOME cause you still own your first! In order to get it you must come from renting/lease not own.

Army Guy

I found the following on the irs.gov website today:

Q: I’m already a homeowner. If I buy a replacement home after Nov. 6, 2009, to use as my principal residence, do I have to sell my home to qualify for the homebuyer tax credit?

A: If you meet all of the requirements for the credit, the law does not require you to sell or otherwise dispose of your current principal residence to qualify for a credit of up to $6,500 when you buy a replacement home to use as your principal residence. The requirements are that you must buy, or enter into a binding contract to buy, the replacement principal residence after Nov. 6, 2009, and on or before April 30, 2010, and close on the home by June 30, 2010. Additionally, you must have lived in the same principal residence for any five-consecutive-year period during the eight-year period that ended on the date the replacement home is purchased. For example, if you bought a home on Nov. 30, 2009, the eight-year period would run from Dec. 1, 2001, through Nov. 30, 2009. (11/17/09)

This pretty clearly states you don't have to sell your existing home first to qualify for the $6500.