Details of the Expanded Tax Credit

Effective date is Tuesday, December 1, 2009

The tax buyer credit expires May 1, 2010.
You must be under contract on a home by May 1^st, and close on that home no later than June 30^th, 2010.

Amounts:

• The first-time buyer credit remains 10 percent of the cost of the home or $8ooo, whichever is less.
  
  
• The credit for existing homeowners is 10 percent of the value of the new home or $6500, whichever is less.

• A first-time homebuyer cannot have owned a home during the past three years.
  
  
• Existing homeowners must have owned and lived in their current home five out of the preceding eight years.
  
  
• Only principal residences qualify. No second homes or investment properties.

• The measure raises the income limits for those claiming the credit to $125,000 a year for individuals and $225,000 for couples, up from $75,000 and $150,000 in the previous first-time buyer credit. After that, the value of the credit phases out.
  
  
• The cost of the new home cannot exceed $800,000.
  
  
• Use IRS form 5405, which you file with an amended tax return.
  
  

For more information on applying, go to http://www.irs.gov/newsroom/article/0,,id=204671,00.html

$8,000 First-Time Home Buyer Tax Credit at a Glance

The tax credit is for first-time home buyers only.
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

To see answers to frequently asked questions to the $8,000 tax credit, visit this link:
http://www.federalhousingtaxcredit.com/2009/faq.php

$7,500 First-Time Home Buyer Tax Credit at a Glance