Federal Home Buyer Tax Credit Extended & Now Expanded to Assist Move-up Buyers too

For all those 1st time homebuyers who had trouble finding "the one" in time for the tax credit, you now have a few more months to contact me and we'll ensure you get a great deal and a quick return from Uncle Sam.

Congress has extended and expanded the homebuyer tax credit. It has passed by both the House & Senate and will be signed off by President Obama in the next few days. The modifications will become effective when President Obama signs the bill. All changes made to the current credit become effective on that date, as well.

December 1 - April 30, 2010 Rules

$8000 ($4000 married filing separate)

First time Buyer - Definition for Eligibility

May not have had an interest in a principal residence for 3 years prior to purchase

Current Homeowner - Amount of Credit $6500 ($3250 married filing separate)

Effective Date - Current Owner

Date of Enactment

Current Homeowner - Definition for Eligibility

No Provision Must have used the home sold or being sold as a principal residence

consecutively for 5 of the previous 8 years

Termination of Credit

Purchases after April 30, 2010 Binding Contract Rule None So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Income Limits:

$125,000 - single, $225,000 - married, Additional $20,000 phase out

Limitation on Cost of Purchased Home $

800,000 Effective Date of Enactment

Purchase by a Dependent

No Provision Ineligible

Effective Date of Enactment

Antifraud Rule

Purchaser must attach documentation of purchase to tax return