Home Buyer Tax Credit 2010 - Revised November 2009
It's official. On November 5, 2009, Congress passed Home Buyer Tax Credit Extension & Expansion. Then on Friday, November 6, 2009, President Obama signed it into Law effective November 7, 2009. This bill extends the tax credit of 10% of home's purchase price (up to $8,000) for first-time homebuyers through April 30, 2010. In addition, a new tax credit of 10% of home's purchase price (up to $6,500) has been added for qualified existing home owners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
CREDIT AMOUNT
First Time Home Buyer: $8,000 ($4,000 married filing separate)
Current Homeowner: $6,500 ($3,250 married filing separate)
ELIGIBILITY
First Time Home Buyer: May not have had an interest in a principal residence for 3 years prior to purchase
Current Homeowner: Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
DEADLINES
Period: Nov 7, 2009 through Apr 30, 2010. All contracts must be in effect no later than April 30, 2010 and close no later than June 30, 2010 Septemper 30, 2010 (Closing Deadline Updated 7/2/2010).
INCOME CAPS
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more may be eligible for receive a partial credit. However, single filers who earn $145,000 and above are ineligible.
Married joint tax filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more may be eligible for a partial credit. However, joint filers who earn $245,000 and above are ineligible.
MAXIMUM PURCHASE PRICE
$800,000
DEPENDENTS
Ineligible
ADDITIONAL REQUIREMENTS (ANTI-FRAUD RULE)
Purchaser must attach documentation of purchase to tax return
MORE INFORMATION
For more information, please check out these links.
Federal Housing Tax Credit (NAHB)
Homebuyer Tax Credit Changes (Comparison Chart)
FAQs Home Buyer Tax Credit Changes
First-Time Homebuyer Credit (IRS)
Home Buyer Tax Credit: Latest News (NAR)
Please Note: Income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you purchased a home between January 1, 2009 and November 6, 2009, please read Home Buyer Tax Credit 8000 - Expires November 30, 2009.
RELATED POSTS
- Home Buyer Tax Credit 8000 - First Time Home Buyer (Extended), Expires April 30, 2010
- Home Buyer Tax Credit 6500 - Current Homeowners (Repeat Buyers), Expires April 30, 2010
- Home Buyer Tax Credit for Military - First Time Home Buyers and Current Homeowners
- Home Buyer Tax Credit 8000 - First Time Home Buyer, Expires November 30, 2009
- First Time Home Buyer Tax Credit Comparison Chart (2008 - 2010)
If you have any real estate questions, please contact me. Whether buying, selling, or just curious to learn more, I'm here to assist you. Please contact me with your questions. I look forward to hearing from you.
This post is provided for informational purposes only. If you have specific questions or individual concerns regarding the tax credit, please contact a tax professional or the Internal Revenue Service at 800-829-1040.
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