2009 Tax Credit for First Time Home Buyers

Home Buyer Tax Credit

As the deadline for the First-Time Homebuyer Tax Credit crept closer, it became a clear priority on the Hill. An extended and expanded home buyer tax credit is a part of a larger bill that also extends unemployment benefits. This bill was signed by President Obama on Friday, November 6.

The bill essentially remains intact but has a handful of important changes:

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

If you’re interested in learning more about the new tax credit or about homes in your area, give Tim and Gina a call at 803-984-7478 or email at tim.guilliams@kw.com

First Time Home Buyers Video http://www.youtube.com/watch?v=h_AO1LCw-_g

	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