Homebuyer Tax Credits
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 | December 1 – April 20, 2010 Rules as enacted November 2009 |
| First-time Buyer – Amount of Credit | $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. |
| Current Homeowner – Amount of Credit | $6500 ($3250 married filing separate) |
| Effective Date – Current Owner | Date of Enactment |
| Current Homeowner – Definition for Eligibility | Must have used the home sold or being sold as principal residence consecutively for 5 of the previous 8 years |
| Termination of Credit | Purchases after April 30, 2010 |
| Binding Contract Rule | 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) | $125,000 – single $225, 000 – married Additional $20,000 phase out |
| Limitation on Cost of Purchased Home | $800,000 Effective Date of Enactment |
| Purchase by a Dependent | Ineligible Effective Date of Enactment |
| Anti-fraud Rule | Purchaser must attach documentation of purchase to tax return |