NAR Issue Brief Homebuyer Tax Credit

 

National Association of REALTORS® Government Affairs Division 500 New Jersey Avenue, NW, Washington DC, 20001

FEATURE Jan 1 – November 30, 2009 Rules as enacted February 2009 November 7 – 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 November 7, 2009
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 November 7, 2009
Purchase by a Dependent No Provision Ineligible November 7, 2009
Anti-fraud Rule None Purchaser must attach documentation of purchase to tax return