What's This $6500 Tax Credit I Hear About?

Q. I'm already a homeowner. If I buy another home after Nov. 6, 2009, to use
as my principal residence, do I have to sell my home to qualify for the
homebuyer tax credit?
A. No. 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. The requirements are that you must buy, or
enter into a binding contract to buy, the replacement principal residence
after Nov. 6, 2009, and 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-year 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)