FIRST-TIME HOMEBUYER TAX CREDIT
As Modified in the American Recovery and Reinvestment Act
|
FEATURE |
CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008 |
REVISED CREDIT - EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009 |
|
Amount of Credit |
Lesser of 10 percent of cost of home or $7500 |
Maximum credit amount increased to $8000 |
|
Eligible Property |
Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence. |
No change All principal residences eligible. |
|
Refundable |
Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser. |
No change Purchasers will continue to receive refund for unused amount when tax return is filed. |
|
Income Limit |
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). |
No change
Same income limits continue to apply.
|
|
First-time Homebuyer Only |
Yes. Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase. |
No change Still available for first-time purchasers only. Three-year rule continues to apply. |
|
Revenue Bond Financing |
No credit allowed if home financed with state/local bond funding. |
Purchasers who utilize revenue bond financing can use credit. |
|
Repayment |
Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing. |
No repayment for purchases on or after January 1, 2009 and before December 1, 2009 |
|
Recapture |
If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale. |
If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009. |
|
Termination |
July 1, 2009 (But note program changes for 2009) |
December 1, 2009
|
|
Effective Date |
Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year. |
All revisions are effective as of January 1, 2009 |
As shared by Scott Stern at Lender's One......
If you choose, you can find me here:
NMLS ID#158606 
An Illinois Residential Mortgage Licensee
Larry, Thank you for the great information and the format you presented it in. I have been searching for the "refundable" aspect of the credit and you had the answer. I guess it's better than a kick in the pants.
Hi Larry, Thanks for the side by side comparison of the various parts of the homebuyer tax credit bill...
Great job putting it in a chart format. Kudos Larry.
Larry... I will agree with Ken. I saw some of the changes and I was going to blog about this, but I have had so much more on my plate. I decided not to write anything until it was 110% official, with the Presidents signature, because anything can still change. But again, nice job and easy to read & to understand.
Troy....no worries.....thanks again....I'm using this in a format for my presentation to the Kane County Bar Association.
Shirley....I like it side by side.
Ken...I wish I could take credit for it, but Scott gets the credit.
JB....de nada.
Scott did a good job and thank you for putting this out there. Very simple to digest.