Tax Credit Questions
We have certainly seen a number of buyers take avantage of the First Time Home Buyer credit that expires on November 30 in the Bennington VT real estate market.
The new legislation recently passed includes a First Time Home Buyer credit and a Repeat Buyer credit.
Of course, this causes those looking in the Bennington Vt real estate market to ask questions, and I can’t blame them, becuase it can all seem so confusing.
Here is an example of a question that was received by a local Mortgage Officer, who sent it along to educate us all:
Answer is from the IRS website.
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)
