$6500 tax credit for home buyers

The new $6,500 federal tax credit in the US for move up home buyers that passed the Senate and House last week, has getting second billing to the original $8,000 credit for first-time purchasers. The $6,500 credit for current homeowners just might have your name on it.

The new credit is available now. It took effect Nov. 6, So if you fit the key criteria off 1 you’ve owned and resided in your current home for a consecutive five out of the past eight years, and 2 your adjusted household income doesn’t exceed $125,000 if you file taxes singly, $225,000 if you are married filing jointly, you may be able to claim the credit as soon as you close on a qualifying home.

There is no actual move-up requirement in the new credit. In fact, homeowners who plan to downsize may prove to be significant users of the credit. If you fit the criteria and are considering buying another home sometime in the coming year, you might want to speed up the process and sign a contract by April 30 2010 and close by the June 30 2010 expiration date.

But remember some other key features of the $6,500 credit; the home cannot cost more than $800,000. The replacement home must become your main residence. To read more on Tax Credits go to washingtonpost.com.