MOVE-UP / REPEAT HOME BUYER TAX CREDIT

The $6,500.00 tax credit is for the Move-Up/Repeat buyer only. The IRS defines a "Move-Up/Repeat Buyer as someone who has owned and lived in their previous/current principal residence for 5 consecutive years of the last 8 years.
The tax credit does NOT have to be repaid unless the home is sold or ceases to be used as the buyer's principal residence within three years after the initial purchase.
The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $6,500.00.
The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase (closing) executed by June 30, 2010 will qualify. (Layman's terms: you must be under a binding sales contract by April 30, 2010 and close on the home before June 30, 2010.)
Income Limits:

Homes purchased prior to November 6, 2009 ARE NOT ELIGIBLE!
Homes purchased "On or AFTER" November 6, 2009 and "On or BEFORE" April 30, 2010 (contract signed, closing before June 30, 2010), the income limits are $125,000.00 for a single taxpayer and $225,000.00 for married taxpayers.

NO... You can amend your last years Tax Filing to receive the credit! (You can of course wait if you would like too.)

How do I apply for the credit? What documentation if any will I be asked to supply?

Application: There is a specific Government Form, IRS Form 5405, that will need to be filled out. Consult a local tax advisor or research the government website.
Documentation needed: You will need to supply a copy of your HUD 1 Settlement Statement (you will sign and receive this document at the closing of your home).

NO... You do NOT have to sell your current, however the new home purchase MUST BECOME YOUR PRIMARY RESIDENCE!