Homebuyer Tax Credit Changes

Congress has extended and expanded the homebuyer tax credit. The modifications extend through April 30, 2010” and become effective when the President signs the bill. Ideally Dec.01. Changes made to the current credit become effective on that date, as well. Most significantly the time allowed has been extended through April 30, 2010 for contracts and through July for closings. i.e.: A contract after April 30,20010 with a June closing would not be eligible. Income limits have been increased for both single and
married couples and the tax credit is not limited to firsttime homebuyers. A cap on the price of an eligible home will become $800,000. where there previously wasn't any. Following is an outline of these changes as published by the NAR.


Firsttime Buyer –
Amount of Credit $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



Current Homeowner –
Amount of Credit $6500 ($3250 married filing separate)


Definition of eligibility - 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 April 30, 2010
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)
$125,000 – single $225,000 – married
Additional $20,000 phase out



Limitation on Cost of purchased home
$800,000 effective date of enactment



Purchase by a Dependent is ineligible effective the date of enactment.



Antifraud Rule - Purchaser must attach documentation of purchase to tax return.



If you have questions regarding the newly expanded Homebuyer Tax Credit please call or email me directly. George Sinacori 561-306-6736 - rebuygeorge@yahoo.com

The photo above is a 3BR 21/2 bath 2 car garage home in NW Deerfield Beach, FL and is priced in the low $200,000. See this and more great home listings at http://ges-realty.com