Federal Legislative Update - New Tax Credit Program Extends 2009 Federal First-Time Homebuyer Tax Credit and Creates a Reduced Tax Credit for Existing Homebuyers Purchasing New Homes

Reblogger Ryan Shaughnessy
Real Estate Agent with PREA Signature Realty - www.preasignaturerealty.com

Loreena Yeo offers a nice overview regarding the extension of the 2009 Federal First-Time Homebuyer Tax Credit as well as the new 2009-2010 Federal Tax Credit for First-Time Homebuyers and Existing Homebuyers.  The recent legislation includes provisions establishing a new tax credit for existing homeowners.  The table created by Ms. Yeo provides an easy to understand overview of the changes between the two tax credit programs.

If you are a purchaser in the St. Louis, Missouri market and need additional information on the provisions of the new federal tax credit, contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381 or send an e-mail to Ryan@PREASignatureRealty.com.

 

Original content by Loreena and Michael Yeo #9001154

 

FEATURE Jan 1 – November 30, 2009
Rules as enacted February 2009
December 1 – 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 Date of Enactment
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
Current Homeowner – Home Purchase Price N/A There is no provision that the "repeat" homebuyer must purchase a property more expensive than the one sold. Only that the home purchase must be less than $800K.
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 Written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close
Income Limits $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
Purchase by a Dependent No Provision Ineligible
Antifraud Rule None Purchaser must attach documentation of purchase to tax return

 

Purchase by a Dependent

There was no age limitation on the original bill and amended for the November Tax Credit. Taxpayer must be at least 18 years old to qualify for the credit. For married taxpayers, the taxpayer shall be treated as meeting the age requirement if the taxpayer or spouse meets the age requirement.

Repeat Buyers

There is no criteria that home buyers must "move up" in house. Only that they lived in the house for the past 5 out of 8 years as a primary residence. The new purchase price must not exceed $800,000.

Date of Enactment = November 6 2009.

 

 

 

*********************************************************************************************

All contents are original. Consider subscribing to my blog for more real estate commentaries.

Subscribe via Email if you are not an Active Rain member here.

Contact:


Loreena Yeo
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

Super-serving Frisco, Plano, Dallas, McKinney, Allen, Little Elm, Prosper, Celina, Richardson, Dallas M-Streets, Dallas White Rock Lake area communities and other surrounding areas.

Copyright © 2009 by Loreena Yeo (3:16 team REALTY)
Originally Posted on First Time Home Buyer Tax Credit Extension & Expansion

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
Missouri Saint Louis City Saint Louis Lafayette Square
Groups:
Seniors Issues
Show Me Missouri
Senior Adult Resources
St Louis City, Missouri - Real Estate & Neighborhood News
Lafayette Square - The Lafayette Report
Tags:
federal tax credit programs
8000 federal firsttime homebuyer tax credit

Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
229,238

Ryan Shaughnessy

Broker/Attorney - Your Lafayette Square Real Estate Partner
Ask me a question
*
*
*
*
Spam prevention

Additional Information