|
Feature |
First Time Homebuyer |
Current Homeowner |
|
Amount of Credit |
Up to $8,000
or $4,000 married filing seperatly. |
Up to $6,500
or $3,250 married filing seperatly. |
|
Eligibility |
May not have
had interest in a principal residence 3 years prior to
purchase. |
Must have
used the prior home as a principal residence for 5 of the
previous 8 years. |
|
Binding Contract Rule |
Must be
under contract by no later then 4/30/2010 and closed no later
then 6/30/2010 |
|
Income Limits |
Single:
$125,000, phasing out to $145,000 maximum
Married:
$225,000, phasing out to $245,000 maximum |
|
New Home Cost Limits |
$800,000 |
|
Second Home Purchase |
Ineligible -
Primary residence use only. |
|
Other Requirements |
Purchaser
must provide documentation to IRS. |
Important Considerations…
ü
Binding purchase contract must be entered into between November 7,
2009, and April 30, 2010 with close of escrow to occur by no later
then June 30, 2010.
ü
For
both first-time home buyer and qualifying current homeowner credits,
the type of home purchased can be a single-family dwelling,
condominium, townhouse, or co-op. For new homes still under
construction, the date of first occupancy must occur by June 30 or
the credit will be lost.
ü
Sale of the current primary residence is not required to qualify for
the $6,500 credit available to current homeowners, as long as the
new home becomes the primary residence.
ü
Eligibility is subject to caps on income in 2010 (single and
married, measured according to the Modified Adjusted Gross Income
[MAGI] on your Form 1040). Please note that if your employer
provides financial support for the relocation, gross income
increases, potentially exceeding the allowable limits.
ü
Since a qualifying current homeowner needs to have used the prior
home as a principal residence consecutively for five of the previous
eight years, it is possible to be eligible if the home has been
rented or otherwise not considered a principal residence for up to
the last three years (for example, during a temporary assignment).
If the home had been sold more than three years earlier, you could
technically qualify as a first-time home buyer. Eligibility is
measured backward from the date the new purchase closes.
ü
First-time home buyers and qualifying current homeowners must retain
ownership of the newly purchased home for a minimum of three years;
otherwise they must repay the total amount of the credit received.
Further, the IRS allows some flexibility as to the year in which the
credit is claimed.
Please Note this
information is provided as an overview of the dates, eligibility and
key considerations regarding the extension and expansion of the
Homebuyer Tax Credit. Please consult with your tax planning
professional for more details.
If you purchased
a home in 2009 please
click here to download the appropriate IRS form for your 2009
filing. |
