Homebuyer Tax Credit Extended and Expanded

Information has been poorly disseminated regarding the extension and expansion of the tax credit for home buyers. It is my best advice to consult a Tax Attorney or your CPA to determine your specific circumstances. However, the changes brought forth are encouraging and exciting for potential buyers.

Here is the simplified version of who it includes.

At a Glance:

FIRST TIME BUYERS
Credit: Equal to 10 percent of the home's purchase price, up to $8,000

Who Qualifies?

* Those who haven't owned property in the last three years
* Those with income up to $225,000 for couples or $125,000 for individuals (credit phases out for people who make more than these amounts)
* Must be at least 18 years of age to claim credit
* Purchase price must be $800,000 or less

Deadlines:

* Have until April 30, 2010, to enter into a contract for a home purchase
* Have until June 30, 2010, to close on the purchase

CURRENT HOMEOWNERS
Credit: Equal to 10 percent of the home's purchase price, up to $6,500

Who Qualifies?

* Those who have owned and lived in their principal residence for at least five consecutive years during the past eight years
* Those with income up to $225,000 for couples or $125,000 for individuals (credit phases out for people who make more than these amounts)
* Must be at least 18 years of age to claim credit
* Purchase price must be $800,000 or less

Deadlines:

* Have until April 30, 2010, to enter into contract for a home purchase
* Have until June 30, 2010, to close on the purchase

PLEASE NOTE: The tax credit does not have to be repaid provided you live in the new home for a minimum of three years. Military families are exempt from this stipulation. Purchaser must attach documentation of purchase to tax return.

In conclusion, there is still so much information regarding this important topic. I will continue to post updates and address your questions as I receive them. Thank you for your continued trust.