Below is information from the National Association of Realtors in regards to the expanded tax credit.  Please let us know if you have any questions and how we can help.

As part of its plan to stimulate the U.S. housing market, Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010 (the purchaser has until July 1, 2010 to close on the home)
  
• Expands the credit to grant a $6,500 credit to current home owners purchasing a new or existing home between the date the bill was signed bu President Obama and April 30, 2010 (the purchaser has until July 1, 2010 to close on the home)
  

• First-time home buyers who purchase homes between the date the bill was signed by President Obama and April 30, 2010
• Current home owners purchasing a home between the date the bill was signed by President Obama and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight

• The Extended Home Buyer Tax Credit may be applied to primary residences, including: single family homes, condos, townhomes and co-ops

• The maximum allowable credit for first-time home buyers is $8,000
• The maximum credit allowed for current homeowners is $6,500

How is a Buyer's Credit Amount Determined?
Each home buyer's tax credit is determined by two additional factors:

• The price of the home
• The buyer's income
  

Price
Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less

Buyer Income
Under the Extended Home Buyer Tax Credit which is effective the date President Obama signed the bill, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000 - may receive the maximum credit

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits

If the Buyer(s) Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit.  Home buyers earning more than the maximum qualifying income - over $145,000 for singles and over $245,000 for couples are not eligible for the credit

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written bindgin contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close

Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more.  However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale

How to Get the Extended Home Buyer Tax Credit
You've decided to purchase a home and take advantage of the Extended Home Buyer Tax Credit.  Here's what you have to do to get your benefit:

1. Close on your home purchase between the date President Obama signed the bill and April 30, 2010, or have a binding contract by April 30, 2010 and close by July 1, 2010
2. Decide whether to:

• apply the credit to your 2009 tax return, filed on or before April 15, 2010;
• file an amended 2009 return; or,
• apply the credit on your 2010 return, filed on or before April 15, 2011

• Claim the credit on their 2009 return, even if the purchase is completed after December 31, 2009;
• File an amended return for 2009 if their purchase if completed after April 15, 2010; or,
• Claim the credit on their 2010 tax returns

1. Fill out Form 5405 to determine the amount of your available credit;
2. Apply the credit when you file your 2009 tax return or file an amended return;