On November 6, President Barack Obama signed into law the extension and expansion of the current homebuyer tax credit, an important step in ensuring a real estate and economic recovery.

The measure extends the present $8,000 tax credit program for first-time homebuyers through April 30, 2010.

It expands the program, effective November 7, 2009, to include current homeowners, who are now eligible for an up to $6,500 tax credit (10 percent of the purchase price) through April 30, 2010 provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years.

If potential homebuyers have a binding contract on or before April 30, they will have until June 30 to close the transaction.

Income limits for eligible homebuyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.

Additional resources on the IRS website can be seen by clicking the links below:

First-Time Homebuyer Credit: Overview

First-Time Homebuyer Credit Questions and Answers: Basic Information

First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2008

First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2009

First-Time Homebuyer Credit: Scenarios

Small Business and Self-Employed Tax Center

IRS Real Estate Tax Center