 NAR Issue Brief Homebuyer Tax Credit Changes National Association of REALTORS® Government Affairs Division 500 New Jersey Avenue, NW, Washington DC, 20001 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. FEATURE Jan 1 – November 30, 2009 Rules as enacted February 2009 December 1 – April 30, 2010 Rules as enacted November 2009 Firsttime Buyer – Amount of Credit $8000 ($4000 married filing separate) $8000 ($4000 married filing separate) Firsttime 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 Date of Enactment 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 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 Effective Date of Enactment Purchase by a Dependent No Provision Ineligible Effective Date of Enactment Antifraud Rule None Purchaser must attach documentation of purchase to tax return |
For Home Buyers > Home Buyer Incentives >