The homebuyer’s tax credit that was due to expire at the end of November has been extended to April 30th 2010. In addition to this a new tax credit has been introduced for current homeowners who want to sell their home and buy another.

The amount of tax credit for new homeowners remains the same ($8000), but there are some addition criteria that need to be met.

1. You must not have had an interest in a principle residence in the last three years.
2. The purchase contract must be in effect on or before the 30th of April 2010. You have until the 1st July 2010 to close.
3. Income limits of $125,000 for single people and $225,000 for Married couples (these amounts have been increased from the first tax credit). There is an additional $20,000 where the tax credit amount is phased out.
4. $800,000 limit on the purchase price (new rule).
5. The home cannot be purchased by a dependent (new rule).
6. The purchaser must attach documentation to their tax return (new rule).

The tax credit for current homeowners is $6500 ($3250 if you are married filing separately). In order to qualify for this you must have used the home sold as your principle residence for 5 of the last 8 years. Rules 2 through 6 must also be met in order to claim the $6500.