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 residence. 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.