Homebuyer Credit Expanded and Extended From IRS Dated November 24, 2009

The Worker, Home Ownership and Business Assistance Act of 2009, signed into law on November 6, 2009 extends and expands the first time home buyer credit allowed by previous acts.
Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close the home by June 30, 2010.
The maximum credit amount remains at $8,000 for a first time home buyer-that is, a buyer who has not owned a primary residence during the three years up to the date of purchase.
But the new law also provides a "long-time resident" credit of up to $6,500 to others who do not qualify as "first-time home buyers."To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least fie consecutive years of the eight year period ending on the date of purchase of a new home as a primary residence.
for all qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 tax returns.
A new version of the Form 5405, first Time Home Buyer Credit, will be available in the next few weeks. taxpayers who claim the credit on their 2009 tax return will not be able to file electronically but instead will need to file a paper return.
Income Limits Raised:
The new law raises the income limits for people who purchase homes after November 6. The full credit will be available to taxpayers with modified adjusted gross incomes (MAGI) up to $125,000 or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000, or $225,000 and $245,000 for Joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.
New Requirements:
Several new restrictions of purchases that occur after November 6th go into effect with the new law:
Dependents are not eligible to claim the credit.
No credit is available if the purchase price of a home is more than $800,000.
A purchaser must be at least 18 years of age on the date of purchase.

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