Homebuyer Tax Credit
Homebuyer Incentives
Great news for buyers. The homebuyer tax credit has been extended and expanded. Take a look at the rules of the previous tax credit compared to the new and improved incentives for first-time buyers and current homeowners.
Check out this YouTube video done by Dustin Hughes with Northwest Mortgage Advisors. It goes over all the basics of the revisions to the buyer tax credit.
It is a great time to buy or sell a home. It is important to be represented by a team of realtors that understand your needs.
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This charts summarizes all of the details of the homebuyer tax credit.
|
FEATURE |
Jan - November 30, 2009
Rules as enacted
February 2009 |
November 7 - 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 |
November 7, 2009 |
|
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
|
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 - Purchaser must attach documentation of purchase to tax return under the new provision effective November 7, 2009.
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