NEWS YOU CAN USE
HOMEBUYER TAX CREDIT UPDATE
Revised November 2009
| FEATURE | Jan. 1 - Nov. 30, 2009 Rules As Enacted February 2009 | Nov. 7 - Apr. 30, 2010 Rules As Enacted November 2009 |
First-time Buyer - Amount of Credit | $8,000 ($4,000 married filing separate) | < Same |
First-time Buyer Definition for Eligibility | May not have had an interest in a principal residence for 3 years prior to purchase | < Same |
Current Homeowner - Amount of Credit | No Provision | $6,500 ($3,250 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 principal residence consecutively for 5 of the previous 8 years |
| Termination of Credit | Purchases after November 30, 2009, (Becomes April 30, 2010 on November 7, 2009) | 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 November 7, 2009) | $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 |
> RESOURCE: Homebuyer Tax Credit FAQs
> MORE INFO: NATIONAL ASSOCIATION OF REALTORS