First Time Homeowner Credit Extended and Expanded.
This credit is now extended to principal residence purchases purchased before May 1, 2010 (or a purchase closed before July 1, 2010 if a contract is entered into before May 1, 2010). The credit phases out for higher income taxpayers. Taxpayers who have stayed in their residence for a 5 year consecutive period will be deemed “first time homeowners” if they acquire a new residence. A residence cannot exceed $800,000.