TAX CREDIT INFORMATION
, Jack Chivers Realty
Published Monday, November 23, 2009
NAR Issue Brief Homebuyer Tax Credit
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
Nov. 7, 2009—April 30, 2010 (Rules as enacted Nov. 2009)
First-Time Buyer Amount of Credit: $8,000 ($4,000 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.
Current Homeowner Amount of Credit: $6,500 ($3,250 married filing separate).
Effective Date Current Owner: November 7, 2009.
Current Homeowner Definition for Eligibility: Must have used the home sold or being sold as principal residence consecutively for 5 of the previous 8 years.
Termination of Credit: Purchases after April 30, 2010.
Binding Contract Rule: So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
Income Limits: $125,000—single; $225,000—married; Additional $20,000 phase out.
Limitation on Cost of Purchased Home: $800,000 Nov. 7, 2009.
Purchase by a Dependent: Ineligible Nov. 7, 2009.
Anti-fraud Rule: Purchaser must attach documentation of purchase to tax return.
