Home Buyer Tax Credit FAQ
Question – I bought my home in 2002 so I should be eligible for the new homebuyer credit, right?
Answer – You’re not the first and won’t be the last to assume that the Federal credit was intended for all existing homeowners in good standing. It’s not immediately obvious that to qualify for the credit, you must sell your home and buy another one. Here’s the way it works.
The so-called ‘existing homebuyer tax credit of $6,500’ is available for homeowners who sell their current primary residence and buy a new primary residence. In other words, it’s for repeat buyers and only those who have owned their current homes for at least five years. Thus, taxpayers are only eligible if they have owned their homes for at least five years and acquire another between November 6, 2009 and April 30, 2010.
