Extension and Expansion of the First Time Homebuyer Tax Credit

Congress has extended and expanded the homebuyer tax credit to include home buyers who have lived in their existing principal residence consecutively for 5 of the last 8 years.

Highlights

First Time Home Buyers can still receive an $8,000 ($4000 married filing seperate) tax credit for homes purchased between December 1, 2009 - April 30, 2010

Current Homeowners can receive a $6500 ($3250 married filing seperate) tax credit for new home purchases provided that they have used their home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.

Credits terminate for purchases after April 30, 2010. Unless there is a written binding contract to purchase a home is in effect prior to April 30, 2010. The purchases would have until July 1, 2010 to close.

Income limits: $125,000 single, $225,000 married

Limitation on cost of Home is set at $800,000

All purchasers ust attach documentation to purchace on their tax return.

For a side by side chart comparison between the 2 tax credits please see below link courtesy of the National Association of Realtors http://www.realtor.org/fedistrk.nsf/files/government_affairs_tax_credit_ext_chart_110409.pdf/$FILE/government_affairs_tax_credit_ext_chart_110409.pdf