9 Things You Should Know About the $8,000 (or $6,500) Home Buyer Credit Straight From the IRS

Trying to figure out whether you qualify for the new $8,000 or $6,500 home buyer credit? Formal guidelines will be published at the end of December in IRS Form 5405, known as the "Worker, Homeownership and Business Assistance Act of 2009". We just call it an excellent homebuyer credit and here are 9 things you should know about it:

1. Buyers of a primary residence are offered an $8,000 tax credit subject to income/price limitations
2. "Move-up" buyers who already own a primary residence are offered a $6,500 tax credit subject to income/price limitations
3. Offer is good for homes purchased through April 30, 2010 and that close by June 30, 2010
4. Single filer income limits: eligible under $125,000; phased out between $125,000 - $145,000
5. Married filer income limits: eligible under $225,000; phased out between $125,000 - $145,000
6. If two unmarried individuals purchase a property and one is eligible for the tax credit, the entire credit can be allocated to that individual
   
7. Home must cost $800,000 or less; credit amount cannot exceed 10% of purchase price
   
8. If you purchased a home after November 6, wait until the new Form is published by the IRS at the end of Decmber before filing
9. No one under 18 is eligible -- so all those tweens who plan on "flipping" houses -- don't expect a hand-out from Uncle Sam!

Los Angeles Times: IRS updates home buyer tax credit