If you were kicking yourself for not jumping in while you had the chance, it’s time to start patting yourself on the back. The previous credit provided up to $8,000 to homebuyers who had not owned a home in the past 3 years, and whose income was $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns. For home purchases occurring after November 6, 2009, the new income limits are $125,000 for single taxpayers and $225,000 for married couples filing jointly. That definitely helps folks around the Puget Sound, and I look forward to helping many of you take advantage of this opportunity in the next few months.

One part of this “new and improved” credit that I really like- is the addition of a move-up buyer credit. This provision allows for a tax credit of up to $6,500 to homebuyers who have lived in the same residence for 5 of the last 8 years, on purchase amounts up to $800,000.

Another element of the new version is that it allows prospective home buyers who believe they qualify for the tax credit to reduce their income tax withholding. Reducing tax withholding will enable the buyer to accumulate cash to contribute to their closing costs or down payment.

Any home purchase qualifies, including single-family homes, townhouses, condominiums, manufactured homes and even houseboats! Qualifying homes may be an existing home, new home or a home the owner contracted to build. If you own a vacation home or rental home that is not their principal residence are also eligible for the tax credit if you buy a principal residence.