Last year, Congress extended the homebuyer tax credit to include more than first-time home buyers. Now those who are buying a replacement home are eligible, in the majority of cases, for a tax credit, in most cases, of $6,500.

Even if you buy this year, as long as you have the purchase under contract by April 30th and close by June 30th you can claim the credit on your 2009 or 2010 return.

There are a couple of qualifiers but, in most cases, they are not problematic. 1. You must have lived in your old home for five consecutive years of the past eight. 2. The new home must be your principal residence and must have cost $800,000 or less. Of course, first-time homebuyers still benefit, with a credit of 10% of the price up to $8,000. If someone you know finally kicked the renting habit in 2009 — or plans to in early 2010 — have them check www.irs.gov for deadlines and income limitations or ask a qualified CPA..

Read 11 More Tax Saving Tips Here

Advertisement