From the National Association of REALTORS® Government Affairs Division
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.
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FEATURE
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Jan 1 – November 30, 2009 Rules as enacted February 2009
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December 1 – April 30, 2010 Rules as enacted November 2009
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| First time Buyer – Amount of Credit |
$8000
($4000 married
filing separate)
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$8000
($4000 married
filing separate)
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| First time Buyer – Definition for Eligibility |
May not have had an interest
in a principal residence for 3
years prior to purchase
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Same
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| Current Homeowner – Amount of Credit |
No Provision
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$6500
($3250 married
filing separate)
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| Effective Date – Current Owner |
No Provision
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Date of Enactment
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| Current Homeowner – Definition for Eligibility |
No Provision
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Must have used the home
sold or being sold as a
principal residence
consecutively for 5 of the
previous 8 years
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| Termination of Credit |
Purchases after
November 30, 2009.
(Becomes April 30, 2010 on
Date of Enactment.)
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Purchases after
April 30, 2010
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| Binding Contract Rule |
None
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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.
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| 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
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$125,000 – single
$225,000 – married
Additional $20,000 phase
out
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| Limitation on Cost of Purchased Home |
None
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$800,000
Effective Date of Enactment
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| Purchase by a Dependent |
No Provision
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Ineligible
Effective Date of Enactment
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| Antifraud Rule |
None
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Purchaser must attach documentation of purchase to tax return
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