Yes and no. While the original $8,000 tax credit for first-time homebuyers has been extended to April 30, 2010, Congress has also expanded the homebuyer tax credit to include existing homeowners. Homeowners who have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years are eligible for a $6,500 tax credit. In addition, the income limits have been increased to $125,000 for single individuals and $225,000 for married couples.

No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6,500 credit.

Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6,500 credit. The keyword here is "consecutive."

No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

You do not have to close before December 1. Once the legislation was signed, it is as if the Nov. 30 date had never existed. Therefore, so long as the contract settles before April 30 (or June 30, worst case), the purchaser will be eligible for the credit.

Yes. The new income limitations went into effect as soon as the President signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date.