For Buyers, For Sellers, Homebuyer's Tax Credits
Homebuyer Tax Credit Update
December 9, 2009
NAR Issue Brief
Homebuyer Tax Credit Changes
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
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 |
Jan 1 – November 30, 2009Rules as enacted
February 2009 |
December 1 – April 30, 2010 Rules as enacted November 2009 |
| Firsttime Buyer – Amount of Credit |
$8000 |
$8000 ($4000 married filing separate) |
| Firsttime Buyer – Definition for Eligibility |
May not have had an interest |
Same |
|
Current Homeowner – |
No Provision |
$6500 ($3250 married filing separate) |
| Effective Date – Current Owner |
No Provision |
Date of Enactment |
|
Current Homeowner – |
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 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 |
$75,000 – single |
$125,000 – single $225,000 – married Additional $20,000 phase out |
|
Limitation on Cost of |
None |
$800,000 Effective Date of Enactment |
|
Purchase by a Dependent |
No Provision |
Ineligible Effective Date of Enactment |
|
Antifraud Rule |
None |
Purchaser must attach documentation of purchase to tax return |
