Homebuyer Tax Credits
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 with 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 |
|
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 |
|
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 (Becomes April 30, 2010 on |
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 |
|
Anti-fraud Rule |
None |
Purchaser must attach documentation of purchase to tax return |
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