The "Worker, Homeownership, and Business Assistance
Act of 2009," which was signed into law on November 6, 2009, made
significant changes to the homebuyer tax credit. Here are the
details.
CREDIT EXTENDED
The new law makes the credit available through April 30,
2010. If your transaction is incomplete as of April 30, you'll still be
able to claim this tax break on your 2009 or 2010 return, provided you
have a binding written contract and close by June 30, 2010.
In most cases, the amount of the credit remains the same - 10% of the
price of your new home, up to a maximum of $8,000 - and it's still
refundable. In addition, recapture requirements are unchanged. That
means you won't have to pay the money back as long as you live in your
new home three years.
PURCHASE PRICE RESTRICTION
For homes bought after November 6, 2009, the credit is
available only when the total purchase price is less than $800,000.
RELAXED ELIGIBILITY REQUIREMENTS
You're now a "first-time homebuyer" if you
used the same residence as your main home for five consecutive years of
the eight years prior to buying the new house. However, if you qualify
under this rule, the credit is limited to a maximum of $6,500.
INCREASED INCOME PHASEOUTS
If you purchase or close on your new home between
November 6, 2009, and June 30, 2010, the credit begins to shrink when
your modified adjusted gross income reaches $225,000 if you're married
filing jointly. The threshold is $125,000 if you're single.
MINIMUM AGE AND DEPENDENCY STATUS
You or your spouse must be at least 18 years old and not
claimed as a dependent on anyone else's return.
UNRELATED SELLER
The person you purchase the house from cannot be a
relative.
RETURN ATTACHMENTS
You'll have to include a copy of the closing statement
with your tax return.
|
