Living in Portland

I have owned and occupied  my home for the past six years and have already signed a contract to sell it and to buy a new home. I did this on November 1st with a closing date of November 25, 2009. Will I qualify for the new Existing Homeowner Tax Credit?

YES , the President signed the bill into law on Nov. 7, 2009, therefore any home purchase  closing after that date is eligible.  The purchase contract  must be entered into prior to  April 30, 2010, but you will have until June 30, 2010 to actually close. Closing is defined as the date you are legally put in title. The IRS will ask for documentation to prove this. This 60 day grace period (Apr. 30 to June 30) to close the purchase transaction is new. The prior law required closing by Nov. 30th with no exceptions.

You are not required to sell your current residence in order to qualify for the $6500. tax credit upon purchase of a new primary residence. However, you must occupy the new home as your primary residence and meet all of the other requirements of the law.