Changes to the Home buyers tax credit-All Realtors should know

Changes to the Home buyers tax credit-All Realtors should know

In Nov of 2009 the United States Congress passed legislation that extended the Home Buyers tax credit program. Not only did this legislation extend the benefits, it also included some changes. Changes that all Realtors should know.

Attributes                                 Old  Plan                                  New Plan

First time home             $8,000                                     $8,000

Buyers credit                                                                                                   

Current home                           $6,500                                     $6,500

Owners credit                                                                                                  

FTHB                                      No residence ownership           N/A                

Eligibility                                   for 3 previous years                                         

Binding contract                        N/A                                         contract in effect by 4/30/10

Rule                                                                                         must close by 7/1/2010

Income limits                            $75,000 single                          $125,000 single

                                                $150,000 married                     $225,000 married

Purchase price                          N/A                                         $800,000

Limitations                                                                                                                   

*Anti fraud rule             N/A                                         documentation must be

                                                                                                Attached to tax return.

• As stated in one of my earlier posts on this subject this rule is new due to the amount of fraudulent applications received by the IRS. This rule has slowed the distribution of the credit to taxpayers dramatically.

If you or family a member are thinking of buying or selling a home, please feel free to contact me for assistance.