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, 2009
Rules as enacted
February 2009
|
December 1 – April 30, 2010
Rules as enacted
November 2009
|
|
First-time Buyer - Amount of Credit
|
$8,000
($4,000 married filing separate)
|
$8,000
($4,000 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
|
$6,500
($3,250 married filing separate)
|
|
Effective Date – Current Owner
|
No Provision
|
Date of Enactment
|
|
Current Homeowner – Definition of 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
|
Purchses 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 2, 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 Purchase Home
|
None
|
$800,000
Effective Date of Enactment
|
|
Purchase by a Dependent
|
No Provision
|
Ineligible
Effective Date of Enactment
|
|
Anti-fraud Rule
|
None
|
Purchaser must attach documentation of purchase to tax return
|
SOURCE: National Association of REALTORS(R) Government Affairs Division * 500 New Jersey Ave., NW * Washington DC 20001
Ave. Home Sale: $379,000
Avg. Sales Price: 379,000
Free Market Alerts 
