Key Features of the Extended Tax Credit “December 1 – April 30, 2010″
[1] First Time Buyer – Amount of Credit
- $8000 ($4000 married filing separate)
[2] First Time Buyer – Who is eligible?
- Purchaser may not have had interest in a principal residence for 3 years prior to purchase.
**[3] Current Homeowner – Amount of Credit (NEW)
- $6500 ($3250 married filing separate)
[4] Effective Date – Current Owner
- Date of Enactment
[5] Current Homeowner – Definition for Eligibility
- Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
[6] Termination of Credit
- Purchases after April 30, 2010
[7] 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
[8] Income Limits
- $125,000 for single people + $225,000 for those that are married; Additional $20,000 phase out
[9] Limitation on cost of purchased home
- $800,000 Effective Date of Enactment
[10] Purchase by a Dependant
- Ineligible Effective Date of Enactment
[11] Anti-Fraud Rule
- Purchaser must attach documentation of purchase to tax return
