Wednesday, March 18, 2009

The First-Time Home Buyer Tax Credit Canceled

Canceled
Extended and Expanded First-Time Home Buyer Tax Credit -
American Recovery and Investment Act of 2009

New Modifications Into April 2010


CREDIT AS CREATED JULY 2008
APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008

RULES AS WERE CHANGED IN NOVEMBER 2009 EFFECTIVE DECEMBER 1 THROUGH APRIL 30, 2010

Lesser of 10 percent of cost of home or $7500

$8000 credit
(or $4000 credit for married spouses
filing separately)

Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.

No Change except price point up to $800,000

Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.



Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).

$125,000:  single person
or
$225,000: married person

Additional $20,000

Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.

Applicant(s) must have utilized  the home being sold as the principal
residence
consecutively for 5 of 8
previous years.

No credit allowed if home financed with state/local bond funding.



Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing.

No. Buyers don't have to repay the tax credit, if owner occupies the home for 3 years or more. But, if the home is sold during the 3-year period, the tax credit will be recouped at home's sale.

If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale.



July 1, 2009
(But note program changes for 2009)

Purchases after
April 30, 2010

Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year.

December 1, 2009 to April 30, 2010 Rules as enacted
November 2009

1 comment:

faisal said...

Hi

I think this may be a report of real estate.

Pakistani Real Etstate.