There's been alot of talk (and a lot of confusion) about who qualifies for what tax credits, how they can be applied and what the parameters of the program are, time wise. In speaking with a lot of you over the last week, I thought the attached table would be helpful in addressing your questions...
|
Feature |
December 1 – April 30, 2010 Rules As Enacted November 2009 |
|
First-time Buyer – Amount of Credit |
$8,000 |
|
First-time 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 |
$6,500 |
|
Effective Date – Current Owner |
December 1, 2009 |
|
Current Homeowner Definition of Eligibility |
Must have used the home sold or being sold as principal residence consecutively for 5 of the 8 previous years |
|
Termination of Credit |
Contract date on or before April 30, 2010 and Settlement before July 1, 2010 |
|
Binding Contract Rule |
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 |
$125,000 – Single $250,000 – Married Additional $20,000 phase out |
|
Limitation on Cost of Purchased Home |
$800,000 |
|
Purchase by a Dependent |
Ineligible |
|
Anti-Fraud Rule |
Purchaser must attach documentation of purchase to tax return |
