Tax Credit Extention

The feds have extended the tax credit. Buyers need to have a property under contract by the 30th of April 2010, and close by the end of July. To leave room for negotiations, buyers should identify and make an offer on a property by mid-April. Waiting until the last moment and making the offer on the 3oth will not make you eligible unless the sellers agree to all terms and sign the purchase and sales contract also on the 30th.  Use the link below for a comparison of the current tax program with the program effective Dec 1st:

Comparison of home purchase tax credits.

FEATURE Jan 1 – November 30, 2009
Rules as enacted
February 2009
December 1 – April 30,
2010 Rules as enacted
November 2009
Firsttime
Buyer –
Amount of Credit
$8000
($4000 married
filing separate)
$8000
($4000 married
filing separate)
Firsttime
Buyer –
Definition for Eligibility
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 on
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, the
purchaser will have until
July 1, 2010 to close.
Income Limits
(Note: Increased income
limits are effective as of
date of enactment of bill)
$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
Effective Date of Enactment
Purchase by a Dependent No Provision Ineligible
Effective Date of Enactment
Antifraud
Rule None Purchaser must attach
documentation of purchase
to tax return