New Tax Credit vs. Old Tax Credit
| |
Previous Provisions
|
New Provisions |
| Effective Date |
January 1, 2009 |
November 7, 2009 |
| Deadline |
Close before December 1, 2009 |
- Contract signed before May 1, 2010, must close before July 1, 2010
- Members of the uniformed services, foreign services, and intelligence employees who served an extended service of 90 days will have until April 30, 2011 and June 30, 2011.
|
| Amount |
- First-Timers: maximum of $8,000 or 10% of sales price
- Prior Owners: $0
|
- First-Timers: Unchanged
- Prior Owners: $6,500 if lived in prior home for at least 5 years of past 8 years
|
| Income Limit |
- Individual: $75,000
- Couple: $150,000
|
- Individual: $125,000
- Couple: $225,000
|
| Other Restrictions |
Home must be primary residence for at least 3 years. If home is sold or buyer moves before 3 years, must re-pay full $8,000. |
- Buyer must be at least 18 years old and not classified as a dependent for tax purposes
- Home must cost less than $800,000
- Home must be primary residence for at least 3 years. If home is sold or buyer moves, before 3 years, must re-pay full amount of credit. Exception for military, foreign services, or intelligence with extended 90 days service overseas.
|
| How to claim |
If purchased in 2009, by amending 2009 tax return or claiming on 2010 tax return |
If purchased in 2010, by amending 2010 tax return or claiming on 2011 tax return |
