Congress has extended and expanded the homebuyer tax credit to include home buyers who have lived in their existing principal residence consecutively for 5 of the last 8 years.
Highlights
First Time Home Buyers can still receive an $8,000 ($4000 married filing seperate) tax credit for homes purchased between December 1, 2009 - April 30, 2010
Current Homeowners can receive a $6500 ($3250 married filing seperate) tax credit for new home purchases provided that they have used their home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.
Credits terminate for purchases after April 30, 2010. Unless there is a written binding contract to purchase a home is in effect prior to April 30, 2010. The purchases would have until July 1, 2010 to close.
Income limits: $125,000 single, $225,000 married
Limitation on cost of Home is set at $800,000
All purchasers ust attach documentation to purchace on their tax return.
For a side by side chart comparison between the 2 tax credits please see below link courtesy of the National Association of Realtors http://www.realtor.org/fedistrk.nsf/files/government_affairs_tax_credit_ext_chart_110409.pdf/$FILE/government_affairs_tax_credit_ext_chart_110409.pdf
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