Home Buyer Tax Credit Expanded & Extended
Congress has extending & expanded the home buyer tax credit. There are several changes, so we wanted to share with you what will be in effect as soon as the President signs the bill.
New bill will be in effect until April 30th 2010. Must have written binding contracts for the purchase on or before April 30th. Must complete sale by July 1.
First time Home Buyer Credit Amount
No Change – Up to $8,000 ($4,000 married filing separately)
First time Home Buyer Eligibility
No Change – May not have had an interest in a principal residence for 3 years prior to purchase.
Current Home Owner Amount of Credit
NEW *** Up to $6,500.00 ($3,250 married filing separately)
Effective Date for Current Home Owner Credit
Date of Enactment
Current Home Buyer Eligibility
Previous/ Current House must have been a primary residence 5 of the previous 8 years.
Income Limits
Increased from $75,000 – $125,000 for Singles
Increased from $150,000 to $225.00 for Married Couples
Additional $20,000 phase out still applies
Limitation on Cost of Purchased Home
The new bill enacts a limit of $800,000 effective the date of enactment
Anti-Fraud Rule
Do to the numerous people falsely claiming the credit, the new bill will require documentation of purchase along with the filing of tax return.
If you are interested in finding out more, please contact us.
