***The $8,000 tax credit for first-time home buyers and the $6,500 tax credit for repeat home buyers have expired. (However, service members who were on official extended duty outside the United States for at least 90 days between January 1, 2009 and May 1, 2010, may qualify for a one-year extension.)***
HOMEBUYER TAX CREDIT
National Association of REALTORS® Government Affairs Division
Major Modifications Italicized
| FEATURE |
January 1 - November 30, 2009 Rules as enacted February 2009 |
November 7 - April 30, 2010
Rules as enacted November 2009 |
| First-time Buyer Amount of Credit | $8000 ($4000 married filing separate) |
Same
|
| First-time Buyer Definition for Eligibility | May not have had an interest in a principle residence for 3 years prior to purchase |
Same
|
| Current Homeowner Amount of Credit | No Provision |
$6500
($3250 married filing separate) |
| Effective Date Current Owner | No Provision |
November 7, 2009
|
| Current Homeowner Definition for Eligibility | No Provision |
Must have used the home sold or being sold as a principle residence consecutively for 5 of the previous 8 years
. |
| Termination of Credit | Purchase after November 30, 2009. (Becomes April 30, 2010 on Date of Enactment) |
Purchases after April 30, 2010 |
|
Binding Contract Rule
|
None |
So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
|
|
Income Limits
(Note: Increased income limits are effective as of date of enactment of bill) |
$75,000 - single $150,000 - married Additional $20,000 phase out |
$125,000 - single $225,000 - married Additional $20,000 phase out |
|
Limitation on Cost of Purchased Home
|
None
|
$800,000 November 7, 2009 |
| Purchase by a Dependent | No Provision | Ineligible November 7, 2009 |
| Anti-fraud Rule | None | Purchaser must attach documentation of purchase to tax return. |
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