Did you buy a home in 2009 or 2008 ?
2008 buyers they actually got a long-term loan that needs to be paid back over time. The buyer and in 2009 don’t !
Currently 4.4 million households are claiming the credit. There are 3 versions
1. 2008 buyers – this was a long term credit interest free and paid back in 15 years
2, 2009 buyers – this is a true credit 1-1-09 an 11-3- 09 home buyers
3. 2009 buyers – the extension to the above credit but added in long-term home owners who want to buy a new home ENDS April 30-2010
To get the credit 1. Primary residence under 800k 2. move up credit for people who lived in their primary residence consecutively for 5 of 8 years 3. There are income limits of 125k AGI single or 250k AGI married.
Getting the credit :
1. Use form 5405 , have your HUD Statement ( signed by all parties)
2. Seller move ups ensure you have documentation to prove you lived i your home for the 5 of 8 years
Can I buy a new home and keep my old one and still get the seller credit ? YES nothing says you have to sell your home. Your new purchased home must now be your primary home though.
I want to sell before the 3 years do I have to pay the money back YES !
I’m not an accountant Im am only rewriting what I have been reading from sources such as the Virginian pilot home section. PLEASE seek tax advice from a professional and use this as guidelines to ask your questions.