Buyers that own(ed) a home can take advantage of Tax Credit

The home buyer tax credit has been extended and more importantly, it's be expanded to include more than First Time buyers.

The law extends the present $8,000 tax credit for first-time home buyers through April 30, 2010. Current homeowners are eligible for a $6,500 tax credit through April 30, provided they have lived in the home they are selling, or have sold, as the principal residence for five consecutive years during the past eight years.

If you meet the eligibility tests you could qualify for a $6,500 credit.  For example, let's say you bought a home in 2000 and lived there until 2008.  You since have been renting, you are eligible because for the creidt because you owned a home and occupied it as your principal residence for 5 consecutive years out of the last 8 years.

If potential home buyers have a binding contract on or before April 30, they will have 60 days to close the transaction.

Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000.

President Obama did sign the bill today.