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					The Home Buyer Tax Credit - First Time Buyers and Current Homeowners

         Feature              First Time Homebuyer                        Current Homeowner
                           Up to $8,000 or $4,000 married filing   Up to $6,500 or $3,250 married filing
Amount of Credit           seperatly.                              seperatly.
                           May not have had interest in a          Must have used the prior home as a
Eligibility                principal residence 3 years prior to    principal residence for 5 of the previous
                           purchase.                               8 years.
                           Must be under contract by no later then 4/30/2010 and closed no later then
Binding Contract Rule      6/30/2010
                                          Single: $125,000 phasing out to $145,000 maximum
Income Limits                             Married: $225,000 phasing out to $245,000 maximum
New Home Cost Limits                                            $800,000
Second Home Purchase                            Ineligible - Primary residence use only.
Other Requirements                          Purchaser must provide documentation to IRS.

Important Considerations…

        Binding purchase contract must be entered into between November 7, 2009, and
        April 30, 2010 with close of escrow to occur by no later then June 30, 2010.

        For both first-time home buyer and qualifying current homeowner credits, the type of
        home purchased can be a single-family dwelling, condominium, townhouse, or co-op.
        For new homes still under construction, the date of first occupancy must occur by
        June 30 or the credit will be lost.

        Sale of the current primary residence is not required to qualify for the $6,500 credit
        available to current homeowners, as long as the new home becomes the primary

        Eligibility is subject to caps on income in 2010 (single and married, measured
        according to the Modified Adjusted Gross Income [MAGI] on your Form 1040). Please
        note that if your employer provides financial support for the relocation, gross income
        increases, potentially exceeding the allowable limits.

        Since a qualifying current homeowner needs to have used the prior home as a
        principal residence consecutively for five of the previous eight years, it is possible to
        be eligible if the home has been rented or otherwise not considered a principal
        residence for up to the last three years (for example, during a temporary
        assignment). If the home had been sold more than three years earlier, you could
        technically qualify as a first-time home buyer. Eligibility is measured backward from
        the date the new purchase closes.

        First-time home buyers and qualifying current homeowners must retain ownership of
        the newly purchased home for a minimum of three years; otherwise they must repay
        the total amount of the credit received. Further, the IRS allows some flexibility as to
        the year in which the credit is claimed.

Please Note this information is provided as an overview of the dates, eligibility and key
considerations regarding the extension and expansion of the Homebuyer Tax Credit. Please
consult with your tax planning professional for more details.

If you purchased a home in 2009 please click here to download the appropriate IRS form for
your 2009 filing.

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