Home Buyer Tax Credit Offically Extended and Expanded

The tax credit will be slightly expanded for its original format to include buyers who have owned their current residence for at least 5 years. These buyers would be given a reduced amount of $6500.00.

The First time home buyer portion of the credit has been extended. The Buyer must be under contract to purchase by the end of April 2010. The home must settle by July 1st, 2010. This gives a few of your who just missed about a few months to get off the fence and make a purchase. The amount remains the same at $8000.00.

Eligibility remains the same for First time buyers.

TAX CREDIT ELIGIBILITY

1.) Amount of Credit - You will be credited the lesser of 10% of the cost of the home or $8000.00 dollars. If you buy a house that costs 70,000 your credit will be 7000 for example.

2.) Eligible Property - Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence

3.) Refundable -Yes. Reduces or can Eliminate income tax liability for the year of the purchase. Any unused amount of tax credit is refunded to the purchaser.

4.) Income Limit - Income limit has increased to 125,000 for a single return and 225,000 for a joint return.

5.) First time Home-buyer Only - Yes. Purchaser (and purchasers spouse) may not have owned a principal residence in 3 years previous to purchase.

6.) Repayment - No repayment for purchases on or after January 1, 2009 and before December 1st, 2009.

7.) Recapture - If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.

8.) Termination - End of April 2010 to be under contract, must settle by July 1st, 2010.

Some officials are saying this is the last time they are going to extend the credit. I think that might be up for debate depending on the condition of the housing market come next summer, but at this point It would be fairly safe to figure this as your last opportunity at the 8000.00 or 6500.00.