I have a question about what I just read on yahoo.
"Under the new language in the Senate, homeowners who have lived in their home for five of the past eight years would be eligible to receive a $6,500 tax credit, while first-time buyers would still be eligible for an $8,000 credit."
What does the part about the $6,500 mean?
It means nothing until the House of Representatives passes the exact same language. If the House of Representatives passes different language, then the conference committee decides. If the House of Representatives passes nothing, then it means nothing.
If the House of Representatives does pass the same language, then anyone who owned a house from 2001-2006, 2002-2007, 2003-2008, or 2004-2009 might qualify for a $6500 tax refund or a $6500 reduction in their tax bill, but only if they fill out some paperwork, and only if either Obama signs the law or the House of Representatives and the Senate both vote by a 2/3rds majority to override his veto.
I understood this differently. I thought this credit was good if you were a first time homeowner in the last 5 years. For example, I purchased my home 3 years ago but the $8000 credit was not an option at that time. Would I be eligible for the $6500 credit?
It means what it says! It means if you've lived in your house for 5 of the past 8 years and you buy a house you get the 6500.
You don't get both. How can that language be hard to understand?