On November 6, President Barack Obama signed into law the extension and expansion of the current homebuyer tax credit, an important step in ensuring a real estate and economic recovery. The measure extends the present $8,000 tax credit program for first-time homebuyers through April 30, 2010.

It expands the program, effective November 7, 2009, to include current homeowners, who are now eligible for an up to $6,500 tax credit (10 percent of the purchase price) through April 30, 2010 provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years.

If potential homebuyers have a binding contract on or before April 30, they will have until June 30 to close the transaction.
Income limits for eligible homebuyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.

Also......for the new credit requirements, one needs to have a signed contract (sales agreement) in place by April 30...............and needs to CLOSE by June 30, 2010. They do not have to close by April 30 - only have an agreement on place by then.

If they close in 2010, they can take the credit when they file their 2009 tax returns, or wait for when they file in 2010. The adjusted gross income amount will apply to the year in which they file.

Extending the $8,000 home buyer tax credit to April 30, 2010.
The legislation, which is part of a larger bill that also extends unemployment benefits, was signed into law by President Obama today.
More people are now eligible to take advantage of the law, which includes a $6,500 tax credit for buyers who are current home owners and have lived in their home for five of the past eight years.
Income limits for eligible home buyers were also expanded to $125,000 for single buyers and $225,000 for couples, up from $75,000 for individuals and $150,000 for couples. Qualifying home prices are capped at $800,000.

Hello Remo, I will let you know when its a done deal, until then its just chatter.

Hi Remo,

FYI...Both the House and the Senate have passed an unemployment insurance bill, which includes an amendment that expands and extends the tax credit. That bill will be sent to President Obama for his signature in the next day or so.

Good Luck,
Curtis Mason

Also Remo, the corresponding form is IRS TAX Credit Form (5405)

Remo .........Hi
In addition to what was already mentioned, there are income limits. To get the full benefit a single person can earn up to $75,000 - couples $150,000...the amount of the credit is gradually reduced above those income limits, and ends at $20,000 above those figures.
Also, the home must be your primary residence.
Best wishes.....
Debbie

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009. To qualify as a "first time home buyer" the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase