Yesterday I was talking with a loan officer from Magna Bank, Allen Bethel, in my office about the new tax incentives that we are telling our clients about. While the $8000 incentive that goes to buyers who are essentially classified as First-Time Homebuyers is something we are all familiar with, the additional incentive that has been put out there is something else.
The incentive, which is being called the Move Up Tax Credit is $6500 for someone who is currently in a home for the past 5 years. But why are we calling it the Move Up Credit? That is really a misnomer for the credit. In reality the tax credit should be called the Moving On or something of that nature tax credit.
This came up for me the other day because I was talking to a family of empty nesters that were wanting to sell their home. As they sat there talking about downsizing and hoping that they had no boomerang children, they asked why there weren't incentives for them. These folks are selling their home and moving to a less expensive home. So do they qualify for the Move Up credit? You bet they do. So we need to make sure that our empty nesters and other folks that are maybe not moving up but moving on to something more manageable understand how this works.
Disclaimer: I am a Real Estate Broker in the State of Tennessee. I am not an Accountant, CPA, Tax Attorney. If you have any questions about the comments in this poat I suggest you consult with a qualified tax representative.