Home Buyer Tax Credit – Real Estate Information

January 29th, 2010 | by David Mueller |

As the deadline for the First-Time Homebuyer Tax Credit approached, it became a clear priority on the Hill. An extended and expanded home buyer tax credit is a part of a larger bill that also extends unemployment benefits. Now the Tax Credit is extended to April 30th 2010.  

The Details are in the table below. Contact David Mueller and Associates for further Real Estate Information at 734-677-6699

 

 

This table notes important changes handful of important changes:

  Previous Provisions

 

 New Provisions
Effective Date January 1, 2009 November 7, 2009
Deadline Close before December 1, 2009
  • Contract signed before May 1, 2010, must close before July 1, 2010
  • Members of the uniformed services, foreign services, and intelligence employees who served an extended service of 90 days will have until April 30, 2011 and June 30, 2011.
Amount
  • First-Timers: maximum of $8,000 or 10% of sales price
  • Prior Owners: $0
  • First-Timers: Unchanged
  • Prior Owners: $6,500 if lived in prior home for at least 5 consecutive years of past 8 years
Income Limit
  • Individual: $75,000
  • Couple: $150,000
  • Individual: $125,000
  • Couple: $225,000
Other Restrictions Home must be primary residence for at least 3 years. If home is sold or buyer moves before 3 years, must re-pay full $8,000.
  • Buyer must be at least 18 years old and not classified as a dependent for tax purposes
  • Home must cost less than $800,000
  • Home must be primary residence for at least 3 years. If home is sold or buyer moves, before 3 years, must re-pay full amount of credit. Exception for military, foreign services, or intelligence with extended 90 days service overseas.
How to claim If purchased in 2009, by amending 2009 tax return or claiming on 2010 tax return If purchased in 2010, by amending 2010 tax return or claiming on 2011 tax return

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