According to the Internal Revenue Service, you do not have to sell your current home to qualify for the $6,500 repeat buyer tax credit, provided your new home will be your primary residence.
This means that you could keep your current home as investment property if you choose, or sell it later…a nice option to have if you are planning a relocation move.
There are, however, some limitations…
- You obviously must financially qualify to own both homes at the same time
- You must have owned your current home and used it as your primary residence for at least 5 consecutive years of the 8 years prior to closing on your new home
- You cannot buy from your parents, grandparents or children
- Tax credit starts to phase out with annual earnings over $125,000 for single taxpayers and more than $225,000 for married taxpayers…ceiling cap is $145,000 for singles and $245,000 for couples
- Your new home cannot cost more than $800,000
- You must have a signed purchase agreement by April 30, 2010 and close by June 30, 2010
See 2010 Homebuyer Tax Credit for more info, including a great Question/Answer series in the New York Times. Consult your tax advisor for advice relating to your specific situation.
Sharlene Hensrud, RE/MAX Results - Email – HomesMSP.com
RELATED POSTS
- Overview of new 2010 homebuyer tax credit
- Up to $1,500 tax credit for furnace, roof, windows, insulation…
- Frequently Asked Questions About the First-Time Home Buyer Tax Credit
- Frequently Asked Questions About the Move-Up/Repeat Home Buyer Tax Credit
- Answers About the Home Buyers’ and Homeowners’ Tax Credits – 4-part New York Times series
Really? This is great! Thanks for sharing the information. Just got another slew of idea. Thanks again.
Deirdre G
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Homes MSP Real Estate Blog: Repeat home buyers? You do not have to sell your current home to get the $6,500 tax credit…