Sellers/Repeat buyers have only about THREE months to take advantage of the extended tax credits, which are available through April 30, 2010. People definitely have questions. This is commonly known as the “Seller” tax credit, but the credit is for the purchase of your new home.

“Who is eligible for the current home buyer tax credits?”

First-time buyers who have not owned a home in the past three years qualify for credit. Sellers/Repeat buyers qualify who have occupied their current home as principal residence for 5 consecutive years in the last 8 years.

“How much is the tax credit for repeat buyers?”

Repeat buyers qualify for up to $6,500, or 10% of the purchase price of the new home (whichever is smaller.) First time buyers can still receive the $8,000 tax credit.

“What do I have to buy to get the tax credit?”

You have to buy a primary residence. It can be a single-family home, a condo, co-op apartment, etc. But vacation homes and rental properties are not eligible. You also may NOT use the tax credit to buy the home from a relative, which includes a spouse, parents/grandparents, or children/grandchildren (etc.).

The house cannot exceed $800,000 to be eligible for the credit. The price of your current home is irrelevant to the credit. (For example, you do not need to buy a more expensive house than your current house.)

“When do I have to buy?”

You need to have a a written, binding contract in place by April 30 and close by June 30, 2010. If you’ve already bought, you need to have CLOSED on your house between November 7, 2009 and June 30 2010. If you signed a contract before November 7 but closed after November 7, you are eligible. (Beware of distressed properties if you are trying to close in a finite amount of time in order to receive the credit!)

“What about my income?”

For joint filers applying for the credit, your adjusted gross income cannot exceed $225,000 in order to recieve the max credit. For single buyers, income must be $125,000 or less for max credit. The credit is available but decreases for single filers who earn between $125,000 and $145,000 and for joint filers who earn between $225,000 and $245,000. The credit is not available for buyers earning an income higher than listed above.

“Do I have to pay it back?”

Not unless you sell your home within three years of purchase. If you do, you’ll have to repay the amount of tax claimed upon the sale.

“Are there any exceptions?”

Members of the uniformed services, Foreign Service and employees of the US intelligence community serving outside the country have an extra year to buy a principal residence and qualify (if they serve at least 90 days from Jan. 1, 2009 through April 30,2010). These individuals also are not held to the same three year rule if their jobs require a sale.

“Who should take advantage of this?”

Anyone who has owned a home for five years are more and considering a move soon, do it NOW before these credits expire. Especially if your current home is in a first-time buyer bracket, get your house among the inventory for these first time buyers who are taking advantage of the last months of the tax credit.

Read More: Realtor.org.

Related...

• January 4, 2011 -- Our Favorite Blogs of 2010
• July 15, 2010 -- Tax Credit Closing Deadline Extended for Buyers Who Purchased by April 30
• April 6, 2010 -- Remaining Weeks of Homebuyer Tax Credit
• February 8, 2010 -- Tax FYI: Energy Star Credit