The Kestner Team

Congress has approved the extension of the First Time Buyers Tax Credit and it is on the way to President Obama's desk for signature.  There will also be a Tax Credit available for current owners to purchase a home.  See below for mor info.

NAR Issue Brief Homebuyer Tax Credit Changes.

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

$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)

Effective Date –Current Owner

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. (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

(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 Purchased Home

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

Posted by Nina Kestner McIver on November 5th, 2009 4:30 PMPost a Comment (0)
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