First time home buyers tax credit

The first time home buyers tax credit extension and expansion awaits The President's signature on the bill (expected Friday, 11/6/09).  If you are considering purchasing a home, or "moving up" to a larger home this is great news! 

Here is some helpful information about the changes:

OLD = Jan 1, 2009 – November 30, 2009 
NEW = December 1, 2009 – April 30, 2010 

First-time Buyer – Amount of Credit: 
OLD: $8000 ($4000 married filing separate) 

NEW: $8000 ($4000 married filing separate) 

First-time Buyer – Definition for Eligibility: 
OLD: May not have had an interest in a principal residence for 3 years prior to purchase 

NEW: Same 

Current Homeowner – Amount of Credit: 
OLD: No Provision 

NEW: $6500 ($3250 married filing separate) 

Effective Date – Current Owner: 
OLD: No Provision 

NEW: Date of Enactment 

Current Homeowner – Definition for Eligibility: 
OLD: No Provision 

NEW: Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years. 

Termination of Credit: 
OLD: Purchases after November 30, 2009. (Becomes April 30, 2010 on Date of Enactment.) 

NEW: Purchases after April 30, 2010. 

Binding Contract Rule: 
OLD: None 

NEW: 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 (Note: Increased income limits are effective as of date of enactment of bill): 
OLD: 
$75,000 – single 
$150,000 – married 
Additional $20,000 phase out 

NEW: 
$125,000 – single 
$225,000 – married 
Additional $20,000 phase out 

Limitation on Cost of Purchased Home: 
OLD: None 

NEW: $800,000 (Effective Date of Enactment) 

Purchase by a Dependent: 
OLD: No Provision 

NEW: Ineligible (Effective Date of Enactment) 

Anti-fraud Rule: 
OLD: None 

NEW: Purchaser must attach documentation of purchase to tax return. 

Source: National Association of Realtors Issue Brief. "Homebuyer Tax Credit Changes"