Real Estate Expert Explains 'Move Up' Tax Credit

Online, April 19, 2010 (Newswire.com) - While you've probably heard a lot in the media about the government's efforts to rejuvenate the housing market with the first-time home buyer tax credit, you might have missed the fact that the most recent expansion of the legislation also includes a $6,500 credit for current homeowners who want to purchase a new home...commonly referred to as "moving up."

"Our firm has dealt with many homeowners over the past year who felt it was a great time to 'move up,' but have stayed put due to so much uncertainty in the market and in their personal lives," said Mark Stark, CEO of Prudential Americana Group. The company is one of Nevada's largest real estate firms. "Thanks to the tax advantages of the Worker, Homeownership, and Business Assistance Act of 2009, now is the time for homeowners to move off the sidelines and pursue the home they've always wanted. There most likely will not be an opportunity quite like this again."

According to Stark, buyers must act fast, as the window of opportunity is closing. The move-up buyer credit expires on April 30, 2010. "This means you must be in contract by April 30th and close on your home purchase by June 30, 2010," said Stark. "If you've been eyeing a home for purchase, act fast in order to capitalize on the credit."

According to Stark, the key points to be aware of regarding the move-up buyer tax credit:

1. A qualified current homeowner who wishes to move to a different home (a "move-up" buyer), must have owned and resided in their residence for five consecutive years out of the last eight. It's not enough that you have been homeowners for five years-you must have been in the same home for five consecutive years.
2. Single taxpayers with incomes up to $125,000 and married couples with a joint income up to $225,000 qualify for the full tax credit. According to Goldman Sachs, these income limits make approximately 70% of current homeowners eligible for the credit.
3. The maximum credit amount for current homeowners is $6,500. Under the new legislation, a tax credit may only be issued for homes purchased for $800,000 or less.
4. Even though the term "move-up" is used to describe these buyers, the credit is not predicated on buying a home of higher value than your current home.
5. Move-up buyers are not required to sell their current home to qualify for the credit. They must reside in the new home for at least three years, but they can keep their existing home and either leave it vacated or use it for rental purposes.

"These are just a few of the key facts surrounding the move-up buyer tax credit," said Stark. "For more information, contact a licensed Nevada Realtor." To find a Prudential Americana Group Realtor, visit www.americanagroup.com.

Prudential Americana Group was Nevada's top-selling real estate company in 2009 and has approximately 1,100 sales executives. It is an independently owned and operated member of Prudential Real Estate affiliates and is the 8th largest in the company's national network of 677 franchises. For more information, visit www.americanagroup.com.