Apr 22, 2010

Tip 15-2010: New Move Up Tax Credit

(New Move Up Tax Credit): The recent amendment to the First Time Homebuyer’s Tax Credit included a provision allowing existing homeowners to receive up to a $6,500 tax credit for purchasing a replacement home. This new provision requires that the homeowner must have owned and lived in his existing house for at least five consecutive years during the prior eight years, the new home price can not exceed $800,000, and the new residence must be under contract by April 30, 2010 with a closing by June 30, 2010.

There are some income limitations, but there does not appear to be any requirement that the homeowners have to sell their existing house nor do they have to buy a more expensive house.

This new provision should be considered for all current homeowners who may want to downsize and benefit from the excellent opportunities in our real estate market, along with the low interest rates available from our local lenders.

Hopefully with the warmer weather, more existing homeowners and first-time homebuyers will take advantage of this government program set to expire soon.

Please contact me if you have any questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia

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