Do you have to sell to get the repeat home buyer credit?
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 year period during the eight-year period that ended on the date the replacement home is purchased.
I'm still waiting for an answer to the question that many of you have posed: Is a couple eligible for the $6,500 if only one of the spouses meets the five-year ownership requirement?
Looking for more information about the repeat-buyer tax credit? This link will take you everything I've written on the topic. And here's the link for blog posts on the first-time buyer credit.