Home buyer tax credit details 09-10
Congress has extended and expanded the home buyer tax credit for 2009-2010, which is great news for sellers and buyers!
The modifications in the column labeled “December 1 – April 30, 2010” became effective when President Obama signed the bill. All changes made to the current credit become effective on that date, as well.
| PROGRAM FEATURE | Jan 1 – November 30, 2009 Rules as enacted February 2009 |
December 1 – 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 | 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 |
| Anti-fraud Rule | None | Purchaser must attach documentation of purchase to tax return |
Source: NAR
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Fred Romano is a top listing broker in Connecticut and has been working with for sale by owners for many years. His expertise in leveraging online marketing for a reasonable low flat fee allows sellers to save half the commission or more compared to traditional brokers!