TAX CREDIT INFORMATION
National Association of REALTORS Government Affairs Division
,
Jack Chivers Realty
Published Monday, November 23, 2009

 


NAR Issue Brief Homebuyer Tax Credit

National Association of REALTORS® Government Affairs Division

500 New Jersey Avenue, NW, Washington DC, 20001

 

Nov. 7, 2009—April 30, 2010 (Rules as enacted Nov. 2009)

 

First-Time Buyer Amount of Credit: $8,000 ($4,000 married filing separate).

First-Time Buyer Definition for Eligibility: May not have had an interest in a principal residence for 3 years prior to purchase. 

Current Homeowner Amount of Credit: $6,500 ($3,250 married filing separate).

Effective Date Current Owner: November 7, 2009.

Current Homeowner Definition for Eligibility: Must have used the home sold or being sold as principal residence consecutively for 5 of the previous 8 years.

Termination of Credit: Purchases after April 30, 2010.

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. 

Income Limits: $125,000—single; $225,000—married; Additional $20,000 phase out.

Limitation on Cost of Purchased Home: $800,000 Nov. 7, 2009.

Purchase by a Dependent: Ineligible Nov. 7, 2009.

Anti-fraud Rule: Purchaser must attach documentation of purchase to tax return.