Homebuyer Tax Credit Extended, Expanded

The tax credit for U.S. homebuyers has been extended, and it has been expanded, so more buyers have been made eligible.

The credit of up to $8,000 for first-time buyers, originally due to expire Nov. 30, has been extended into 2010. This is money that never has to be repaid, provided you live in the home for three years or more.

Homebuyers who've lived in their home for five of the last eight years are now eligible for a credit of up to $6,500.

Facts you need to know about the Homebuyer Tax Credit:

You must sign a purchase agreement for your home no later than April 30, 2010, and the transaction must close no more than 60 days after that date.

First-time buyers receive a credit of 10 percent of the purchase price, up to and not exceeding $8,000. You are considered a first-time buyer if neither you nor your spouse/ partner has owned a principle residence in the U.S. within the last three years.

Homeowners who have lived in their current residence for at least five of the last eight years can receive a 10 percent credit of up to $6,500 when they contract to purchase a home before April 30, 2010, and close by June 30.

There is no minimum income for claiming the credit. You qualify for the full tax credit even if you won't owe any taxes for 2009 or 2010.

The upper income limit to receive the tax credit is raised to $125,000 for individuals and $225,000 for couples.

You can claim the credit when you file your 2009 or 2010 tax return -

You can also file an amended return for 2008 or 2009 and receive the money upon purchasing your home. And you can even apply the credit to your down payment for the purchase of an FHA-insured home.

If the purchase price is more than $800,000, the buyer is not eligible for the credit.

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To reach me, Laura Coffey, (661) 284-5004 or www.Laura4Homes.com