As an existing homeowner, you may be eligible for a big tax credit. If you purchase a new principal residence by April 30, 2010, you could get a tax credit of up to $6,500. To be eligible, you must have lived in your home for 5 consecutive years of the past 8. There is an $800,000 price cap for eligible homes, and the credit begins to phase out for joint filers who have an income of $225,000, and for single filers who have an income of $125,000.
Now is the time to move to a new home. There are lots of great houses available, and eligibility is good for closings through June 30, as long as the contract is in place by April 30. Your REALTOR can help you decide if you are eligible for the credit, but you need to hurry to allow yourself time to find the perfect home by April 30. Click here to learn more.