Homebuyer Tax Credit Changes
Nov 18, 2009 | Steve McGuire | In : Financing a Home | Leave a comment
Homebuyer Tax Credit Changes (pdf) posted by National Association of REALTORS® Government Affairs Division
Congress has extended and expanded the homebuyer tax credit. The modifications in the column labeled “December 1 – April 30, 2010” become effective when President Obama signs the bill. All changes made to the current credit become effective on that date, as well.
| FEATURE | November 30, 2009 Rules as enacted February 2009 |
December 1 – April 30, 2010 Rules as enacted November 2009 |
| First-time Buyer – Amount of Credit | $8000 ($4000 married filing separate) | $8000 ($4000 married filing separate) |
| 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 | $6500 ($3250 married filing separate) |
| Current Homeowner – Effective Date | No Provision | Date of Enactment |
| 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. |
Purchases after April 30, 2010 |
| Binding Contract Rule | None | 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 |
$125,000 – single $225,000 – married Additional $20,000 phase out |
