The President signed into law on November 6th, the 2009 1st Time Home Buyer Tax Credit Extension.  The extension will allow home owners to take advantage of the program before May 1st, 2010 with all closing on a primary residence to occur no later than June 30th 2010.

The 1st Time Buyer Changes:

  1. Buyer must be 18 years of age as of closing date.
  2. The credit can be claimed on 2008 tax returns if closing occurs before Dec. 31st, 2009 and on 2009 tax returns after Dec. 31st, 2009.
  3. The income limits changed to $125,000 for an individual and $225,000 for couples.
  4. House price no greater than $800,000.
  5. Borrower will need to provide a copy of settlement statement to the IRS to claim

Move Up Buyer Component:

In the case of an individual (and, if married, such individual’s spouse) who has owned and used same residence as such individual’s primary residence for any 5-consecutive-year period during the 8-year period ending on the date of the purchase of a subsequent principal residence, such individual shall be treated as a first-time homebuyer for purpose of claiming the tax credit.  Such individual or couple can claim an amount no greater than $6,500.  All other rules of the tax credit apply.