$8,000 Tax Credit Extended - Details

New Home Buyer Tax Credit Information: See Details

NAR Issue Brief: Homebuyer Tax Credit - Comparison of Old vs New Rules

First Time Buyer Amount of Credit:
OLD: $8,000 ($4,000 married filing separate)
NEW: $8,000 ($4,000 maried filing separate)

FIRST TIME BUYER DEFINITION FOR ELIGIBILITY:
OLD: May not have had an interest in a principal residence for 3 years prior to purchase
NEW: Same

CURRENT HOMEOWNER AMOUNT OF CREDIT:
OLD: No Provision
NEW: $6500 ($3250 married filing separate)

EFFECTIVE DATE CURRENT OWNER:
OLD: No Provision
NEW: November 7, 2009

CURRENT HOMEOWNER DEFINITION FOR ELEGIBILITY:
OLD: No Provision
NEW: Must have used the home sold or being sold as principal residence consecutively for 5 of the previous 8 years.

TERMINATION OF CREDIT:
OLD: Purchases after November 30, 2009 (Becomes April 30, 2020 on Date of Enactment)
NEW: Purchase after April 30, 2010

BINDING CONTRACT RULE:
OLD: None
NEW: 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 effective as of date of enactment of bill)
OLD: $75,000 - single, $150,000 - married. Additional $20,000 phase out
NEW: $125,000 - single, $225,000 - married. Additional $20,000 phase out

LIMITATION ON COST OF PURCHASED HOME:
OLD: None
NEW: $800,000 Nov 7, 2009

PURCHASE BY A DEPENDENT:
OLD: No Provision
NEW: Ineligible November 7, 2009

ANTI-FRAUD RULE
OLD: None
NEW: Purchaser must attach documentation of purchase to tax return

Further information regarding the tax credit may be found at www.federalhousingtaxcredit.com or www.irs.gov. This information is provided for general awareness only, and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind. Please consult with your tax professional for complete details.