Here's an update to your question.

The current $8k tax credit has been extended. It now applies through qualified purchases made through April 2010, but these homes must close with Title Transfers made before July of 2010. This also gives you time to close on a nice short sale.

The new law also provides $6500 tax credit to any person who has lived in a home consecutively for 5 of the last 8 years and wishes to purchase another home as their primary residence. The time frame is the same.

I have copies of the NAR point paper briefing and FAQ if anyone would likea copy, they can call me at 440-385-5650 or email at paul@druryrealty.com.

Paul W. Drury
Broker / Consultant
Keller Williams Realty
Greater Cleveland West

Richard:

I'm facinated. You are an agent in N.Y.,N.Y. & your question says you are from Bay Village, OH in the Greater Cleveland Real Estate Market where I am located....

I'm adding on to the first answer:

1. A qualiified first time home buyer is anyone who has not owned a home (including joint ownership) for three years before their home purchase within the IRS credit period (closing on/owning the new home no later than 11/30/09). As as example, we have a client who sold the family home to a family member more than 3 yrs ago who is buying a home for retirement. The client qualifies for the credit.

2. There are income limits (AGI) for both individuals & joint filers with the IRS. Above those limits, the maximum credit begins to decline to a maximum income (AGI) where the credit is not available at all to the buyer/buyers.

Buyers need to purchase a home by Dec. 1, 2009. They must close by Nov. 30, 2009. There is talk about extending the credit but nothing definite so far.

First time home buyers or anyone who has not owned a home as their primary residence is eligible for the credit. Check with a CPA to make sure the buyer qualifies if they is any question.

The credit is 10% of the purchase price or up to $8000. There are some income restrictions and the credit amount will be adjusted accordingly.

The credit is given on the buyers tax return as a credit in the taxes paid section. So if a buyer paid $5000 in income taxes the $8000 credit is added to that for a total of $13,000. The taxes due are deducted and the balance is the refund.

Check with a CPA with any questions to be sure.