Homebuyer Tax Credit and Primary Residence

[troonimy]

Hello everyone,

I have a Homebuyer Tax Credit / Primary Residence Question for you all...

First, I received the 8k tax credit for buying in 3/10. An opportunity has come up for my wife and I just recently and we have decided to take advantage of it, however it involves us moving out of state. My wife moved in 4/12, and I just moved all of my "stuff" but I am a teacher so I can easily pass off that I live there over the summer. Our home has been for sale for 2 months, has had a lot of interest but no offers. I know if our home "sells" we only pay back if we experience a gain...but my biggest concern is the status of our "primary residence."

While our home sits on the market we are keeping all utilities in the home address (mail is being forwarded). I have already lived in the home for the "greater number of nights in a year" for 2012. I will also travel back and forth 1-2 times per month to check up on things. Our bank is still located near this residence (will not setup a new bank yet since everything is direct deposit). My wife wants to set up our Drivers Licenses at the new location but I worry this will effect our "primary residence" status.

Anybody know where we "stand?" Also, will setting up new Drivers Licenses and transferring auto insurance to new state affect us? We would keep home insurance on the residence, however.

[Mr. Knowitall]

A primary residence is a residence in which an individual lives most (at least 51%) of the time. If you meet that test for 2012, you're okay for the 2012 tax year. If you can't sell a house over the course of nine months, odds are your asking price is too high for the market.