Friday, November 6, 2009

NEW TAX CREDIT EXTENSION INFORMATION

Congress has extended and expanded the homebuyer tax credit.   New rules become effective November 6, 2009.
          NOVEMBER 6, 2009 - APRIL 30 2010

Amount of credit                            Up to $8,000
(first time buyer)                            $4,000 married filing
                                                     separately)

Definition of                           May not have had interest in a
Eligibility                                principal residence for the past
                                             3 years prior to purhcase

Current Homeowner                        Up to $6,500
Amount of Credit                             (3,250 married filing
                                                       separately)

Effective date                               November 6, 2009

Definition of                             Used as principal residence for at
Eligibility -                                least 5 consecutive years out
Current Homeowner                 out of previous 8 years

Expiration of Credit                   May 1, 2010

Contract Date Rule                   Must close by 6/30/2010

Income Limits                           $125,000 single
Effective November 6, 2009      $225,000 married
                                                Additional $20,000 phase
                                                out

Cost of Home Limits                  $800,000
                                                Effective November 6, 2010

Purchase by Dependant            Not eligible for credit

Anti-Fraud Rule                        Must attach HUD1 to tax
                                                 return








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