The clock is ticking towards the new and extended deadline date for the first time homebuyer's $8,000 tax credit and the addition $6,500 tax credit for people occupying their previous home for 5 years. Circle April 30, 2010 on the calendar. All contracts need to be finalized by that date and they must close on/or before June 30, 2010.
Question: I owned my home for seven years, but sold it two years ago and I have been renting ever since. If I buy a home today will I qualify for the $6500 tax credit?
Answer: If you meet all the eligibility tests on income of $125,000(single) or $225,000(married), the purchase price is under $800,000 and you close before July 1, 2010........then yes you qualify. Also as long as you lived in the home 5 years straight, the 2 years rental period did not disqualify you.