Tax Credit Facts
Congress passed a bill and sent it on to President Obama for his signature to extend and expand a homebuyers tax credit. The National Association of Realtors is updating Realtor.org and currently has a podcast and side-by-side comparison of the changes that are expected to be signed into law.
For informational purposes the here is a summary of the credit once it is signed by the President that may help answer questions from your members:
-Expiration date for credit is April 30, 2010
-First-time buyers still eligible for same credit ($8,000 for married couples, $4,000 for those filing separately)
-Current homeowners, who have consecutively maintained the home they want to sell as their primary residence for five of the last eight years, are also eligible. However, the maximum amount for those homeowners is lower ($6,500 for married couples, $3,200 for separate filers)
-The tax credit may not used to purchase a home for more than $800,000
-The income limits for both tax credits have been raised to $125,000 for single buyers and $225,000 for married couples
Here is the link to the IRS form to claim tax credit:http://www.irs.gov/pub/irs-pdf/f5405.pdf
NAR Issue Brief
Homebuyer Tax Credit
National Association of REALTORS® Government Affairs Division500 New Jersey Avenue, NW, Washington DC, 20001
FEATURE
Jan 1 – November 30, 2009
Rules as enacted
February 2009
November 7 – April 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 ProvisionMust 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 NoneSo 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 $800,000November 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
