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The Home Buyer Tax Credit has been extended and expanded. The bill will extend the Home Buyer Tax Credit until April 30, 2010 and provide a $6,500 credit for those that have been in their current home for at least 5 years. Buyers with higher incomes can now qualify for either the First Time Home Buyer credit or the "Move-up" credit. The earnings cap has been amended to $125,000 for an individual and $225,000 for a couple. The original bill phased out the $8000 credit for individuals earning between $75,000 and $95,000 and $150,000 to $170,000 for couples. The limit of home price continues to be $800,000.
| FEATURE | Jan 1 - November 30, 2009
Old February 2009 Law | December 1 - April 30, 2010
New Law as of November 5, 2009 | First-time Buyer Amount of Credit | $8000 Credit
($4000 married filing separate) | $8000 Credit
($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 of 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 NOW becomes April 30, 2010 | Purchases after April 30, 2010 | | Binding Contract Rule | None | So long as a written binding contract to purchase is in effect April 30, 2010, the purchaser has until July 1, 2020 to close. | Income Limits:
Note: Increased income limits are effective as of date of enactment of new bill. | $75000 - 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 | | Purchased by a Dependent | No Provision | Ineligible
Effective Date of Enactment | | Anti-Fraud Rule | None | Purchaser must attach documentation of purchase to tax return |
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