Information Courtesy of Smyth & Clark PC:The credit for first time home buyers has been increased to $8,000. Under 2008 law, the credit had to be repaid. Under 2009 law, for homes purchased between January 1, 2009 and December 1, 2009, the credit does not have to be repaid (as long as you live there 3 years) and is refundable. This means you get $8,000 back even if you paid no tax for the year. In addition, you can amend your 2008 tax return and claim the credit immediately rather than waiting until your 2009 filing. On November 6, 2009 there was another change to this credit. Now you have until April 30, 2010 to enter into a purchase contract on a home. (Which must be completed by June 2010) In addition, long-time homeowners can claim a credit of $6,500 for purchasing a new residence. You must have lived in your old home 5 of the last 8 years. Some income limits apply to either credit.
Best advice: Use this as a guide, but check with your own CPA to know what will apply to you.
