I'm sure you've been reading articles here and there about the proposed Tax Credit Expansion.  Maybe you've wondered why YOUR Realtor(R) hasn't posted anything! Well here it is!  I prefer to wait until a proposed bill actually gets signed before handing out information so that we're giving out good information and not just speculation!
It became effective when the President signed it, so here's a breakdown on the difference between the OLD tax credit and this NEW version!

Old Credit - must close by  Dec 1, 2009	New Credit - Must be under contract by 4/30/2010, close by 7/1/2010
First-time buyers receive 10% of the purchase value, UP TO $8,000	This stays the same
Buyers who have owned a home within last 3 years cannot claim credit.	Buyers who have owned a home for 5 consecutive years of the last 8 years are eligible for a $6500 credit.
Income limit for singles: $75,000 Income limit for marrieds: $125,000 $20,000 additional phase-out	Income limit for singles: $125,000 Income limit for marrieds: $225,000 $20,000 additional phase-out
No limit on purchase price	$800,000 limit on purchase price
No documentation needed to file for credit	Must provide documentation of actual purchase on the tax return

Now I've already had questions from current homeowners who had sold a home and moved up in 2009.  Unfortunately they did not make this retro-active, so it is effective as of the day they signed this into law.  However, for those of you currently listed for sale, you now have a chance at a tax credit too!  Plus this will help ensure the buyer pool keeps coming out looking instead of fading into the usual winter slowdown.

For buyers, you've got a breather and more time to find the right house without worrying about losing the credit.  The loosened income restrictions will also help more qualify as first-time buyers and obtain the credit as well.

If you have any questions regarding the credit, drop me a line and we will do our best to answer!  As always, since this involves your finances and taxes, of course we suggest that you check with your tax preparer for specific questions about how this will affect you at tax time!