Congress has extended and expanded the homebuyer tax credit. The NEW IMPROVED changes will take place on December 1, 2009 until April 30, 2010. Listed below are some of the highlights (note new items are in bold).
* $8,000 Credit to first time home buyer ($4,000 if married filing separate).
* First time home buyer is defined as not have had an interest in a principal residence for 3 years prior to purchase.
* Current Homeowners are now allowed a tax credit of $6,500 ($3,200 if married filing separate).
* Current Homeowner definition must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.
* Income limits have increased from $75,000 single $150,000 married to $125,000 single and $225,000 if married.
* Limitation on cost of purchase must be $800,000 or below.