Good news for existing homeowners! You’ll finally be eligible to take advantage of the home buyer tax credit. When the President signed a bill today to Extend the $8,000 First Time Home Buyer Tax Credit , it also included a provision for existing homeowners, referred to as long-time residents.
To qualify as a long-time resident, you must have owned and lived in your current residence for at least five years of the previous eight years.
$6,500 Home Buyer Tax Credit
Here are the requirements for the $6,500 home buyer tax credit:
- You purchased your new home after November 6, 2009, and before May 1, 2010, or you have a signed contract by April 30, 2010 and you must close on the new home by
June 30, 2010.Update: The existing home buyer tax credit is extended  until Sept. 30, 2010.
- Income phaseouts will begin at $125,000 for single filers and $225,000 for married filing joint.
- The credit is for primary homes that cost $800,000 or less.
For instructions on how to get your tax credit, including the form to file with your taxes and what documentation you need to include, see How to Claim Your Home Buyer Tax Credit .
For more information, see the original First Time Home Buyer Tax Credit .