When Congress extended the tax credit for first-time homebuyers through April 2010, it also created a tax credit for existing homeowners who buy a new place. The credit is available to taxpayers who have owned and lived in the same home for any five consecutive years during the eight years prior to a home purchase. You need to sign a binding contract by next April 30 and close the sale by July 1, 2010.
Thus, homeowners who want to move up to a larger home may be eligible. The same is true for retirees who want to move into a less expensive home or relocate for any reason.
This tax credit is worth $6,500. To get the full credit, the buyer’s income must be no more than $125,000, or $225,000 on a joint return. The credit phases out with income up to $145,000 (single) or $245,000 (joint).
