The $8,000 federal homebuyer tax credit was set to expire on Nov. 30, but President Barack Obama recently signed the Workers, Homeownership and Business Assistance Act, which extended the tax credit to those who purchase a home or have one under contract to April 30, 2010.

The $8,000 tax credit is still for first-time homebuyers or for those who have not owned a home in three or more years. The new law expands the program to include homeowners who have owned a home for five or more years, and qualifies them for up to $6,500 in tax rebates.

First Time Buyer – Amount of Credit - $8000 ($4000 married filing separate)

Current Homeowner – Amount of Credit - $6500 ($3250 married filing separate)

First Time Home Buyer Definition for Eligibility – May not have had an interest in a principal residence for 3 years prior to purchase

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 Purchases after November 30, 2009. (Becomes April 30, 2010 on Date of Enactment.)

Binding Contract Rule - So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until June 30, 2010 to close.

Income Limits (Note: Increased income limits are effective as of date of enactment of bill)-
First Time Home Buyers: $75,000 – single, $150,000 – married, Additional $20,000 phase out
Current Homeowners: $125,000 – single, $225,000 – married, Additional $20,000 phase out

Limitation on Cost of Purchased Home -
First Time Home Buyers: None
Current Home Owners: $800,000

For Property information that will assist you in obtaining this Tax Credit go to:

www.KammieQuinonesRealEstate.com