Homebuyer Tax Credits

• The first time Homebuyer credit is an $8,000 credit against taxes that can either be claimed on the 2009 or 2010 return.  The buyer must be in a contract by April 30, 2010 and close by June 30, 2010.

• Long time homeowner credit is a $6,500 credit against taxes that can either be claimed on the 2009 or 2010 return.  The buyer must be in a contract by April 30, 2010 and close by June 30, 2010.  The purchased home must become the principal residence and the buyer must have lived in the old house for any 5 consecutive year period during the past 8 years.

Phase out of the credit based on Modified Adjusted Gross Income for both are as follows:

• Single - starting at $125,000 and ending at $145,000
• Married - starting at $225,000 and ending at $245,000

Other notes:

• Purchase price can not exceed 800,000
• Military families qualify for extended deadlines (2011 instead of 2010)

For full details, go to IRS link: http://www.irs.gov/newsroom/article/0,,id=204671,00.html