HOME BUYER TAX CREDIT:  What is in it for you.

First-time Buyer
Amount of Credit

$8000
($4000 married
filing separate)

$8000
($4000 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

Same

Current Homeowner
Amount of Credit

No Provision

$6500
($3250 married
filing separate)

Effective Date
Current Owner

No Provision

November 7, 2009

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
November 7, 2009

Purchase by a Dependent

No Provision

Ineligible
November 7, 2009

Anti-fraud Rule

None

Purchaser must attach documentation of purchase
to tax return