John Hall & Associates publishes a monthly e-newsletter for its real estate agents. Packed with lots of current and useful info, I discovered the following gem, which conveniently answered another question one of my clients had been asking.
Q: I’m already a homeowner. If I buy a replacement 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?
Michelle Lind, General Counsel/Asst. CEO for the Arizona Association of REALTORS® sent us the following response and websites:
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. 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).
Here are two websites that Michelle also sent.
From the Arizona Association of Realtors: Homebuyer Tax Credit Expanded and Extended through April 30, 2010!
From the IRS: First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2009
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