The National Association of Home Builders (NAHB) has posted a Frequently Asked Questions section for the Move-Up/Repeat Home Buyer Tax Credit that went into effect November 6, 2009. The FAQ answers questions regarding a $6,500 tax credit for existing home owners purchasing a principal or primary residence before April 30, 2010 and closing no later than June 30, 2010.
Among the requirements of the tax credit are that the home buyer must have owned and resided in the same home for 5 of the past 8 years prior to the purchase date. And they cannot make over $125,000 (or $225,000 for married taxpayers). The maximum sales price eligible for the credit is $800,000. However, unlike some other tax incentives, the new residence does not need to be more expensive than the prior home.
The great thing about this tax credit is that it is refundable. Even if you have little or no federal tax liability you can claim the credit and receive a check from the IRS.
