Homebuyer Tax Credit Overview

Congress has extended and expanded the homebuyer tax credit. Themodifications in the column labeled “December 1 –April 30, 2010” become effective when President Obama signs the bill. Allchangesmade 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 marriedfiling separate) $8000 ($4000 marriedfiling 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 marriedfiling 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 aprincipal residenceconsecutively for 5 of the previous 8 years
Termination of Credit Purchases after November 30, 2009.(Becomes April 30, 2010 onDate of Enactment.) Purchases after April 30, 2010
Binding Contract Rule None So long as a written binding contract to purchase is ineffect on April 30, 2010, the purchaser will have untilJuly 1, 2010 to close.
Income Limits (Note: Increased income limits are effective as of date of enactment of bill) $75,000 – single $150,000 – marriedAdditional $20,000 phase out $125,000 – single $225,000 – marriedAdditional $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