Homebuyer Tax Credit - As modified in the American Recovery and Reinvestment Act of 2009
(Major Modifications in Italic)
The following information highlights the differences between the 2008 and the 2009 Housing Tax Credit...
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Feature
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Credit as Created July '08 - Applies to all Qualified Purchases on or After
April 9th, 2008
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Revised Credit - Effective for Purchases on or After January 1st, 2009 & on or Before
November 30th, 2009
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Amount of Credit
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Lesser of 10% of cost of home or $7,500
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Maximum credit amount increased to $8,000
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Eligible Property
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Any single family residence (including condos, co-ops) townhouses that will be used as a principal residence.
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No change
All principal residences eligible.
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Refundable
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Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.
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No change
Purchasers will continue to receive refund for unused amount when tax return is filed.
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Income Limit
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Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).
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No change
Same income limits continue to apply.
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Qualifications
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Purchasers (and purchaser's spouse) may not have owned a principal residence in three (3) years previous to purchase.
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No change
Still available to First Time Homebuyers or those who have not owned a principal residence in the three (3) years prior to purchase.
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Revenue Bond Financing
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No credit allowed is home is financed with state/local bond funding.
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Purchasers who utilize revenue bond financing can use credit.
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Repayment
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Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing.
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No repayment for purchases on or after January 1st, 2009 and on or before November 30th, 2009.
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Recapture
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If home sold before 15-year repayment period ends, then outstanding balance or repayment amount recaptured on sale.
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If home is sold within three (3) years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
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Termination
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July 1st, 2009
(But note program changes for 2009)
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On November 30th, 2009.
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Effective Date
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Purchases on or after April 9th, 2008 and before January 1st, 2009. Repayment to begin for 2010 tax year.
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All revisions are retroactive to January 1st, 2009.
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Source: National Association of REALTORS®
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I was under the impression that the termination date for the $8K was Dec 31, not Nov.30.