Ready to Move Up or Downsize? Current homeowners along with first time buyers can take advantage of the Federal Home Buyer Tax Credit

The Homebuyer’s tax credit is not just for first time homebuyers anymore.

Congress has extended and expanded the Homebuyer's tax credit. A key change is that the existing homeowners are now eligible for up to a $6,500.00 tax credit. Another key change is the income limits have been increased, but a price cap will apply. The changes will go into effect as soon as the bill is signed by President Obama. A quick reference of the changes are below.

	2009 Rule	New Rule
First-time Buyer Credit	Up to $8,000.00	Up to $8,000.00
First-time Buyer Eligibility	Purchaser cannot have had an interest in a property for 3 years prior to purchase	No change
Current Homeowner Credit	None	$6,500.00
Current Homeowner Eligibility	None	Must have lived in the property being sold for 5 of the last 8 years
Termination of Credit	November 30, 2009	Binding contract prior to April 30, 2010, closed by July 1, 2010
Income Limits	$75,000.00 – single (phase out up to $95,000.00) $150,000 – married (phase out up to $170,000.00)	$125,000 – single (phase out up to $145,000.00) $225,000 – married (phase out up to $245,000.00)
Purchase Price Limitations	None	$800,000.00
Anti-fraud Rule	None	Documentation of purchase must be attached to tax return