Home Buyer Tax Credit
An extended and expanded home buyer tax credit is a part of a larger bill that also extends unemployment benefits. This bill was signed by President Obama on Friday, November 6, 2009.
The bill essentially remains intact but has a 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
The bill essentially remains intact but has a handful of important changes: