Note: This is intended to
provide an overview only - for specific information or individual
concerns, please contact your lawyer, accountant and/or financial
advisor.
The federal income tax credit for homebuyers has
been extended and expanded to now include homeowners who wish to "move
on" after 5 years of living in their current property, as well as
first-time homebuyers.
First-time homebuyers, or those who have not
owned in the last three years, can receive up to an $8,000 tax
credit
Homeowners who have lived in a current home
consecutively for 5 of the past 8 years can receive up to a $6,500
tax credit
There may be no future extensions, so
all qualified homebuyers are urged to act and have a written,
binding contract by April 30, 2010 (close by June 30, 2010)
Income limits are now $125,000 for singles,
$225,000 for married couples
According to The National Association of Realtors News Release,
dated 11/5/09, the original bill has been credited with helping
approximately 2 million people to date, adding an estimated $22
billion to the general economy.
The following chart provides more
information:
Feature
For First-Time
Homebuyers
For Current
Qualifying Homeowners
Amount of Credit
$8,000 ($4,000) married
filing separate)
$6,500 ($3,250 married filing
separate)
Eligibility
May not have had an interest
in a principal residence for 3 years prior to purchase
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 April 30,
2010
Purchases after April 30,
2010
Binding Contract Rule
N/A
So long as a written binding
contract to purchase is in effect on April 30, 2010 the
purchaser will have until June 30, 2010 to close
Income Limits
$125,000 - Single
$225,000 - Married
Additional $20,000 Phase Out
$125,000 - Single
$225,000 - Married
Additional $20,000 Phase Out
Limitation on Cost of
Home Purchased
$800,000
$800,000
Second Home Purchase
N/A
Ineligible
Purchase Made by a
Dependent
Ineligible
Ineligible
Additional
Requirements
Purchaser must attach
documentation of purchase to tax return
Purchaser must attach
documentation of purchase to tax return
