A Tax Credit for Current Homeowners

With tax season coming up, are you bummed you didn't qualify for that $8000 tax credit the first-time homebuyers are receiving?

Did you know that there is a tax credit for current homeowners? Current homeowners looking for a replacement residence may qualify for a tax credit of up to $6500 ($3250 if married filing separately) under the new "long-term resident" provision. They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased. This new provision also only applies to homes purchased after Nov. 6th 2009.

And now for the exclusions...no homes that cost more than $800,000, you must be over 18 years of age (dependants cannot claim the credit). Those who sell their new home or stop using it as their main residence within three years would have to repay the credit. You cannot claim the credit if acquired your home by gift or inheritance OR if you acquired your home from a related person.


For more information, check out the Federal Housing Tax Credit's FAQs