First time home buyer tax credit; move up/down home buyer tax credit.

Much talk has come out about the NEW tax credit for owners of existing homes.  The new tax credit now extends it's tax credit to current homeowners.  The new law signed by president Obama has extended and expanded the homebuyer tax credit.  The new credit was signed into law November 6th, 2009

• Revised Home Buyers Tax Credit
• Valid: November 6, 2009 – April 30, 2010
• First-time Buyer - Amount of Credit: $8,000 ($4,000 if married filing separate)
• First-time Buyer- Definition for Eligibility: may not have had an interest in a principal residence for 3 years prior to purchase.
• Current Homeowner – Amount of Credit: $6,500 and $3,200 if married filing separate. (There was no provision for this in the original plan.)
• Current Homeowner - Definition for Eligibility:  Must have used the home sold, or being sold, as a principal residence consecutively for 5 of the previous 8 years.
• Termination of Credit: Purchases after April 30, 2010.
• Binding Contract Rule: 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: $125,000 for single (up from the original $75,000); $225,000 for married (up from the original $150,000). Additional $20,000 phase out.
• Limitation of Cost of Purchased Home: $800,000. (There was no limit specified in the original plan.)
• Purchase by a Dependents:  Ineligible.
• Anti-fraud Rule: Purchaser must attach documentation of purchase to tax return. There was not such a  requirement in the original plan.

To see if you qualify for the new extended and expanded government tax credit contact your local Realtor(R) to determine how to move up in a down market!