Agent Blogs

Matthew Ma
REALTOR®, GRI, e-PRO
NAR Issue Brief - Homebuyer Tax Credit Changes
Updated Sunday, November 8, 2009  :  Views (508)

Congress has extended and expanded the homebuyer tax credit. The modifications in the column labeled
“December 1 – April 30, 2010” become effective when President Obama signs the bill. All changes made
to the current credit become effective on that date, as well.

FEATURE
Jan 1 – November 30, 2009
Rules as enacted
February 2009
December 1 – April 30,
2010 Rules as enacted
November 2009
Firsttime Buyer –
Amount of Credit
$8000
($4000 married
filing separate)
$8000
($4000 married
filing separate)
Firsttime 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
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
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
(Note: Increased income
limits are effective as of
date of enactment of bill)
$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
Effective Date of Enactment
Purchase by a Dependent
No Provision
Ineligible
Effective Date of Enactment
Antifraud
Rule
None
Purchaser must attach
documentation of purchase
to tax return

Source: National Association of REALTORS® Government Affairs Division

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