Tax Preparation for New Homeowners

The first-time homebuyer credit is extended to apply to principal residences purchased before
December 1, 2009.

The maximum amount of the credit has been increased for homes purchased after December 31,
2008 from $7,500 to $8,000. For married individuals filing separately, the maximum credit has been
increased from $3,750 to $4,000.

The recapture rules are now waived for principal residences purchased after January 1, 2009 and
before December 1, 2009. The accelerated recapture rules will only apply if the taxpayer disposes of
the residence, or the residence ceases to be the principal residence of the taxpayer or the taxpayer's
spouse, within 36 months of the date of purchase.

Taxpayers who purchase a home in 2009 and elect to treat the purchase as if made in 2008 are not
subject to recapture rules or the $7,500 credit limit.

Effective for principal residences purchased after December 31, 2008 and before December 1, 2009.

Please note the following changes made for the 2009 tax year for first-time homeowners.

For all inquiries, please contact Mitchel's Bookkeeping & Tax Service, L.L.P. via telephone at (856)
779-9300, fax at (856) 779-0122, or email at Gary@Mitchels.com.