Ask Andy: Home-buyer tax credit - WMC Action News 5 - Memphis, Tennessee

Ask Andy: Home-buyer tax credit

By Andy Wise - bio | email | Twitter | Facebook

MEMPHIS (WMC TV) - The federal government is not only extending the $8,000 tax credit for first-time home buyers, but it is also cutting homeowners a break to test the secondary buyers' market.

Congress has approved up to a $6,500 tax credit for folks who already own homes, but want to upgrade or move. Here are the qualifications, according to Jerry Davis, partner in the Memphis CPA firm Frazee Ivy & Davis, PLC (http://www.ivymclean.com/) and Barbara Weltman, a New York tax attorney and contributor to Bottom Line Personal magazine:

* Must have owned a home and used it as your primary residence for five consecutive years in the last eight years

* Must be buying a home with a purchase price of no more than $800,000

* Must sign a contract by April 30, 2010 and close by June 30, 2010

* Must have annual income of up to $125,000 for single filers; up to $225,000 for couples to get the full credit

* Must have annual income of up to $145,000 for single filers; up to $245,000 for couples to qualify for a reduced credit

For home sales that qualify in 2010, taxpayers may choose to claim the credit on either their 2009 or 2010 tax returns.

For complete details, click on the IRS release about the home-buyer tax credits:  http://www.irs.gov/newsroom/article/0,,id=204671,00.html

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