Home Buyer Tax Credit Changes

Now that it’s law, I thought this information deserved its own post. If you have any questions about how this might apply to buying your next Louisville home, please don’t hesitate to contact me.

FEATUREJan 1 – November 30, 2009 Rules as enacted February 2009December 1 – April 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 EligibilityMay not have had an interest in a principal residence for 3 years prior to purchase-same-
Current Homeowner – Amount of CreditNo Provision$6500 ($3250 married filing separate)
Effective Date – Current OwnerNo ProvisionDate of Enactment
Current Homeowner – Definition for EligibilityNo ProvisionMust have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
Termination of CreditPurchases after November 30, 2009. (Becomes April 30, 2010 on Date of Enactment.)Purchases after April 30, 2010
Binding Contract RuleNoneSo 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 HomeNone$800,000 Effective Date of Enactment
Purchase by a DependentNo ProvisionIneligible
Effective Date of Enactment
Antifraud RuleNonePurchaser must attach documentation of purchase to tax return