First Time Home Buyers Tax Credit Extension

First Time Home Buyers Tax Credit Extension

On Nov. 6, 2009, President Obama signed the Unemployment Compensation Extension Act (H.R. 3548) into law. It included, as an amendment, an extension and expansion of the Homebuyer Tax Credit. All changes in the bill became effective on Nov. 6 2009, the day the bill was signed.

The Homebuyer Tax Credit was extended for first-time homebuyers who sign a binding contract by April 30, 2010 and close on the purchase by June 30, 2010; and expanded to include a $6,500 credit for current homeowners who purchase a new primary residence. Under the terms of the legislation, "current" homeowners must have used the home they have sold, or that is being sold, as their primary residence consecutively for five of the past eight years. In addition, other eligibility requirements apply, including income limits.

For more information you can visit the National Association of Realtorsฎ and check their Frequently Asked Questions.

FEATURE JAN. 1 - NOV. 30, 2009
RULES AS ENACTED
FEBRUARY 2009		 NOV. 7 - APR. 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 Date of Enactment — November 7, 2009
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 — November 7, 2009) 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 buyer would have to close on the purchase by July 1, 2010
Income Limits (Note: Increased income limits are effective as of date of enactment of bill — November 6, 2009) $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 —
November 7, 2009
Purchase by a Dependent No Provision Ineligible
Effective Date of Enactment —
November 7, 2009
Antifraud Rule None Purchaser must attach documentation of purchase to tax return

For additional information, contact one of our agents.