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| FIRST-TIME HOMEBUYER TAX CREDIT Homebuyer Tax Credit FAQ Homebuyer Tax Credit Revised 2009 Homebuyer Tax Credit - Revised November 2009 | | FEATURE | Jan. 1 - Nov. 20, 2009 Rules As Enacted February 2009 | Nov. 7 - Apr. 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) |
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| First-time Buyer - Definition of Eligibility | May not have had an interest in a principal residence for 3 years prior to purchase | Same |
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| Current Homeowner - Amount of Credit | No Provision | $6,500 ($3,250 married filing separate) |
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| Current Homeowner - Effective Date | No Provision | November 7, 2009 |
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| 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 |
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| Termination of Credit | Purchase after November 30, 2009. (becomes April 30, 2010 on November 7, 2009) | Purchases after April 30, 2010 |
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| 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 |
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Income Limits (Note: Increased income limits are effective as of November 7, 2009) | $75,000 - Single $150,000 - Married Additional $20,000 phase out | $125,000 - Single $225,000 - Married Additional $20,000 phase out |
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| Limitation on Cost of Purchased Home | None | $800,000
November 7, 2009 |
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| Purchase by a Dependent | No Provision | Ineligible
November 7, 2009 |
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| Anti-Fraud Rule | None | Purchaser must attach documentation of purchase to tax return |
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*Source: National Association of Realtors
Older Rules: As Modified in the American Recovery and Reinvestment Act Major Modifications Italicized February 2009 FEATURE | CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008 | REVISED CREDIT – EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009 | Amount of Credit | Lesser of 10 percent of cost of home or $7500 | Maximum credit amount increased to $8000 | Eligible Property | Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence. | No change All principal residences eligible. | Refundable | Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser. | No change Purchasers will continue to receive refund for unused amount when tax return is filed. |
Income Limit
| Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000). | No change Same income limits continue to apply. | First‐time Homebuyer Only | Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase. | No change Still available for first-time purchasers only. Three-year rule continues to apply. | Revenue Bond Financing | No credit allowed if home financed with state/local bond funding. | Purchasers who utilize revenue bond financing can use credit. | Repayment | Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing. | No repayment for purchases on or after January 1, 2009 and before December 1, 2009 | Recapture | If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale. | If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009. | Termination | July 1, 2009 (But note program changes for 2009) | December 1, 2009 | Effective Date | Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year. | All revisions are effective as of January 1, 2009 |
This page was last modified on Sunday, November 22, 2009 08:41:37 PM | |
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