It's my understanding that the credit is for 1st time homeowner's or people who haven't owned for awhile. I have a client that's telling me she's been reading in real estate mags that there is a credit for "long time home owner's" and wants to know if her mom can get that? I'm not seeing anything like that for a person who has owned a home for several years, sells and buys a new one in about 6 months. Anyone know anything I don't?
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Existing homeowner
The following applies to existing homeowners for purchases made after November 6, 2009:
An existing homeowner is eligible for a credit up to $6500($3250 if separate returns are filed) provided the taxpayer(and the homeowner's spouse, if married) has owned and used the same principal residence for any five consecutive years during the eight-year period ending on the date of purchase. -
Found it!
I found on the IRS.gov website the "long time homeowners qualify if they owned and used the same home as their principle residence for 5 of the 8 years preceding the home purchase" This lady owned a home for several years and lived in it, sold it recently and will be buying one soon. I'm assuming she qualifies for 10% up to 6500.00, am I right?Comment
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It's on page
11-3 of TTB.Comment
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