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$8,000 Tax Credit Info


Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

  • Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
  • Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

 

Please contact us to see if this credit applies to you! 

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 FEATURE

 Jan 1 - November 30, 2009
Rules as enacted
February 2009

 November 7 - April 30, 2010
Rules as enacted
November 2009

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 First-time Buyer
Amount of Credit

  $8000
($4000 married filing separate)

 $8000
($4000 married filing separate)

     

 First-time Buyer
Definition for Eligibility

 May not have had an interest in a
principal residence for 3 years
prior to purchase 

 Same

     

 Current Homeowner
Amount of Credit 

 No Provision 

 $6500
($3250 married filing separate) 

     

 Effective Date
Current Owner

 No Provision

 November 7, 2009

     

 Current Homeowner
Definition for Eligibility

 No Provision 

 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 November 30, 2009.
(Becomes April 30, 2010 on
Date of Enactment.)

 Purchases after April 30, 2010 

     

 Binding Contract Rule

 None

 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) 

 $75,000 - single
$150,000 - married
Additional $20,000 phase out

 $125,000 - single
$225,000 - married
Additional $20,000 phase out

     

 Limitation on Cost of
Purchased Home 

 None

 $800,000
November 7, 2009

     

 Purchase by a Dependent

 No Provision 

Ineligible
November 7, 2009

     

 Anti-fraud Rule

 None

 Purchaser must attach
documentation of purchase to
tax return