NEWS FLASH  November 5, 2009

The expansion & extension to the Homebuyer Tax Credit has passed the Senate 98-0.  This is great news!  

Here's some details on the proposed tax credit:

... The first-time homebuyer credit, set to expire on November 30 under

current law, would be expanded and liberalized as follows (the changes

generally would apply for residences bought after the enactment date):

(1) ... The credit would sunset on Apr. 30, 2010, but for those who

enter into a written binding contract before May 1, 2010 (to close on

the purchase of a principal residence before July 1, 2010), the credit

would sunset on June 30, 2010.

(2)... The credit would only be available for homes with a purchase

price of $800,000 or less (currently there's no price ceiling).

(3)... A taxpayer could elect to treat the purchase as made on

December 31 of the calendar year preceding the purchase for

purposes of claiming the credit on the prior year's tax return.

(4)... No District of Columbia first-time homebuyer credit would be

allowed to any taxpayer with respect to the purchase of a residence

if the national first-time homebuyer credit is allowable to that

taxpayer (or the taxpayer's spouse) with respect to the purchase.

(5)... The credit would not be restricted to first-time homebuyers. It

could be claimed by taxpayers who have owned and used the same

residence as their principal residences for any 5 consecutive-year

period during the 8-year period ending on the date of the purchase

of the subsequent principal residence (i.e., the one that would

qualify them for a credit). However, the homebuyer credit for these

... The homebuyer-credit recapture requirement would be waived for

military personnel, including members of the Foreign Service and

intelligence community, forced to sell as a result of an official extended

duty of service. Additionally, military personnel serving outside the U.S. for

at least 90 days in 2009 or 2010 would have one additional year to qualify

for the homebuyer credit.

 "long-time residents” could not exceed $6,500. 

Tax Credit Provides an Incredible Opportunity for Home Buyers

A tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

$8,000 Home Buyer Tax Credit at a Glance

The information on this page pertains to the American Recovery and Reinvestment Act of 2009.

• The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

Frequently Asked Questions About the Home Buyer Tax Credit