Home Buyer Tax Credit Changes

Now that it’s law, I thought this information deserved its own post. If you have any questions about how this might apply to buy your next Louisville home, please don’t hesitate to contact me.

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
Antifraud Rule None Purchaser must attach documentation of purchase to tax return

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