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$8000 Home Buyer's Credit Extended and Expanded The Worker, Homeownership, and Business Assistance Act of 2009 greatly expands the First Time Homebuyer Tax Credit by making more first time homebuyers eligible for the credit and now includes homebuyers that are not first time homebuyers. First Time Homebuyers: The current law is extended until April 30, 2010. Buyers have until that date to have a signed purchase agreement. There is an additional 60 day grace period to complete the financing. More first time homebuyers are eligible because the new law raises the annual income limits from $75,000 to $125,000 for singles and from $150,000 to $225,000 for married couples. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase. Current Home Owners: Over 60 percent of current home owners will be eligible for a tax credit of up to $6,500 if they purchase a home by April 30, 2010. These homebuyers must have lived in their home for five consecutive years over the previous eight years to qualify. Qualified homebuyers can get the credit if they purchase a home for $800,000 or less as their primary residence between Nov 7, 2009 and Apr 30, 2010. The income limits are the same as the First Time Homebuyer listed above.
NAR Issued Brief – Homebuyer Tax Credit | FEATURE | Jan 1 – Nov 30, 2009
Rules as enacted
February 2009 | Nov 7 – Apr 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 | November 7, 2009 | 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
November 7, 2009 | Purchase by a Dependent | No Provision | Ineligible
November 7, 2009 | Anti-fraud Rule | None | Purchaser must attach
documentation of purchase to tax return |
Click Video Below for more detailed Information about the $8,000 Tax Credit:
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Contact Us
|
|
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Whether you are planning to buy your 1st or 10th home or sell your existing home, contact us today!
We'd love to hear from you!
|
|
|