It’s not necessary for you to sell your home to qualify for the $6500 Homebuyer Tax Credit. I’ve been asked this question a few times since the expanded homebuyer tax credit for repeat buyers became law. Considering we’re marching towards April 30, the deadline eligible homebuyers need to have an accepted offer on a home, I thought it would be a good time to spread the word. Here’s the lowdown directly from the IRS site:
Q: I’m already a homeowner: If I buy a replacement home to use as my principal residence, do I have to sell my home to qualify for the homebuyer tax credit?
A: If you meet all of the requirements for the credit, the law does not require you to sell or otherwise dispose of your current principal residence to qualify for a credit of up to $6,500 when you buy a replacement home to use as your principal residence. You must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. Additionally, you must have lived in the same principal residence for any five-consecutive period during the eight-year period that ended on the date the replacement home is purchased. For example, if you bought a home on Nov. 30, 2009, the eight-year period would run from Dec. 1, 2001, through Nov. 30, 2009. (11/17/09).
Here’s a link to the IRS site, where you’ll find Homebuyer tax credit questions and answers for homes purchased after November 6, 2009 when the extended and expanded homebuyer tax credit became law.
