Federal Tax Credit Extension
Federal Home Buyer Tax Credit Extension*
The federal income tax credit for home buyers has been extended and expanded to now include homeowners who wish to "move on" after 5 years of living in their current property, as well as first-time home buyers.
- First-time home buyers, or those who have not owned in the last three years, can receive up to an $8,000 tax credit.
- Homeowners who have lived in a current home consecutively for 5 of the past 8 years can receive up to a $6,500 tax credit.
- There will be no future extensions, so all qualified home buyers are urged to act and have a written, binding contract by April 30, 2010 (close before July 1,2010)
- Income limits are now $125,000 for singles, $225,000 for married couples.
Review the following chart for more information:
FEATURE |
For 1st Time Home Buyers |
For Current Qualifying Homeowners |
|
Amount of Credit |
$8,000 ($4,000 married filling separate) |
$6,500 ($3,250 married filing separate)
|
|
Eligibility
|
May not have had an interest in a principal residence for 3 years prior to purchase
|
Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.
|
|
Termination of Credit
|
Purchases after April 30, 2010
|
Purchases after April 30, 2010
|
|
Binding Contract Rule
|
N/A
|
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 |
$125,000 - Single |
|
Limitation of Cost of Home Purchased
|
$800,000
|
$800,000
|
|
Second Home Purchase
|
N/A
|
Ineligible
|
|
Purchase Made by a Dependent
|
Ineligible
|
Ineligible
|
|
Additional Requirements
|
Purchaser must attach documentation of purchase to tax return
|
Purchaser must attach documentation of purchase to tax return
|
* This is intended to privde an overview only - for specific information or individual concerns, please contact your lawyer, accountant and/or financial advisor.
More details can be found by clicking here.
