EUREKA GOLD REAL ESTATE 2285 Benton Road, Suite D201 Bossier City, LA 71111 318-752-5888 FAX: 318-678-8295 teamtheriac@msn.com
EXTENDED HOME BUYER TAX CREDIT
Which Properties Are Eligible?
The Extended Home Buyer Tax Cedit may be applied to primary residences, including: single-famlly homes, condoes, townhomes, and co-ops.
How Much is Available?
The maximum allowable credit for first-time home buyers if $8,000.
The maximum credit allowed for curent homeowners is $6,500.
How is a Buyer's Credit Amount Determined:
Each home buyer's tax credit is determined by two additional factors:
1. The price of the home. 2. The buyer's income.
Price
Under the Extended Home Buyer Tax Credit, credit may be awarded on homes purchased for $800,000 or less.
Buyer Income
Under the Extended Home Buyer Tax Credit which is effective on the date the bill is signed by President Obama single buyers with incomes up to $125,000 and married couples with incomes up to $225,00 - may receive the maximum tax credit.
If the Buyer(s)' Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income - over $145,000 for singles and over $245,000 for couples are not eligible for the credit.
Can A Buyer Still Qualify If He/She Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchases will have until July 1, 2010 to close.
Will The Tax Credit Need To Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit wil be recouped on the sale.
HOMEBUYER TAX CREDIT CHANGES
Feature
Jan 1-Nov 30, 2009 Rules as Enacted Feburary 2009
Dec 1-Apr 30, 2010 Rules as Enacted November 2009
First-time Buyer - Amount of Credit
$8000 ($4000 married filing separate)
$8000 ($4000 married filing separate)
First-time Buyer - Definition for Eligibiity
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 after 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, purchaser will have until July 1, 2010 to close
Income Limits
$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
Purchase by Dependent
No Provision
Ineligible
Anti-fraud Rule
None
Purchaser must attach documentation of purchase to tax return
Above information provided by the National Association of REALTORS® Government Affairs Division, 500 New Jersey Ave.nue, NW, Washington, D.C. 20001
