The federal income tax credit for homebuyers has been extended and expanded to now include homeowners who wish to move to another home after 5 years of living in their current property, as well as first-time homebuyers.
- First-time homebuyers, or those who have not owned in the last three years, can receive up to an $8,000 tax credit
- Homeowners who have lived in a current home consecutively for 5 of the past 8 years can receive up to a $6,500 tax credit
- There may be no future extensions, so all qualified homebuyers are urged to act and have a written, binding contract by April 30, 2010 (close by June 30, 2010)
- Income limits are now $125,000 for singles, $225,000 for married couples with a $20,000 phase-out of the credit for both.
The following chart provides more information:
Feature | For First-Time Homebuyers | For Current Qualifying Homeowners |
Amount of Credit | $8,000 ($4,000) married filing separate) | $6,500 ($3,250 married filing separate) |
Eligibility | May not have had an interest in a principal residence for 3 years prior to purchase | 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 | Purchases after April 30, 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 June 30, 2010 to close | So long as a written binding contract to purchase is in effect on April 30, 2010 the purchaser will have until June 30, 2010 to close |
Income Limits | $125,000 - Single $225,000 - Married Additional $20,000 Phase Out | $125,000 - Single $225,000 - Married Additional $20,000 Phase Out |
Limitation on Cost of Home Purchased | $800,000 | $800,000 |
Purchase Made by a Dependent
| Ineligible
| Ineligible
|
Additional Requirements | Purchaser must attach documentation of purchase to tax return | Purchaser must attach documentation of purchase to tax return |
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