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.

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 (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:

http://www.kammie.bestsonomahomesearch.com/

License #01372729

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