Tax Credit Extension Regulations
The tax credit extension new dates are as follows: November 7 – April 30, 2010. Rules as enacted November 2009.
Tax Credit Rules:
1. First time buyer amount of credit will remain the same $8,000 ($4,000 married filing separate)
2. First-time buyer definition for eligibility: May not have had an interest in a principal residence for 3 years prior to purchase.
3. Current Homeowner amount of Credit: $6500 ($3250 married filing separate).
4. Effective Date Current Owner: November 7, 2009.
5. Current Homeowner Definition for Eligibility: Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.
6. Termination of Credit: Purchases after April 30, 2010.
7. Binding Contract Rules: 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.
8. Income Limits: $125,000-single, $225,000-married, additional $20,000 phase out .
9. Limitation on Cost of Purchased Home: $800,000 November 7, 2009.
10. Purchase by a Dependent: Ineligible.
11. Anit-fraud Rule: Purchaser must attach documentation of purchase to tax return.