EXTRA - EXTRA! The latest news on the $8,000 Tax Credit

News from the National Association of REALTORS® Government Affairs Division

The House and the Senate have passed the unemployment insurance bill, that included the amendment that expands and extends the tax credit.

It's expected that President Obama will sign the bill in the next day or so...

There are some variations however:

Program Date:
CURRENT = Jan 1, 2009 - November 30, 2009
NEW = December 1, 2009 - April 30, 2010

First-time Buyer - Amount of Credit:
CURRENT = $8000 ($4000 married filing separate)
NEW = $8000 ($4000 married filing separate)

First-time Buyer - Definition for Eligibility:
CURRENT = May not have had an interest in a principal residence for 3 years prior to purchase
NEW = Same

Current Homeowner - Amount of Credit:
CURRENT = No Provision
NEW = $6500 ($3250 married filing separate)

Effective Date - Current Owner:
CURRENT = No Provision
NEW = Date of Enactment

Current Homeowner - Definition for Eligibility:
CURRENT = No Provision
NEW = Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.

Termination of Credit:
CURRENT = Purchases after November 30, 2009. (Becomes April 30, 2010 on Date of Enactment.)
NEW: Purchases after April 30, 2010

Binding Contract Rule:
CURRENT = None
NEW = So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Income Limits (Note: Increased income limits are effective as of date of enactment of bill):
CURRENT = $75,000 - single / $150,000 - married / Additional $20,000 phase out
NEW = $125,000 - single / $225,000 - married / Additional $20,000 phase out

Limitation on Cost of Purchased Home:
CURRENT = None
NEW = $800,000 (Effective Date of Enactment)

Purchase by a Dependent:
OLD = No Provision
NEW = Ineligible (Effective Date of Enactment)

Anti-fraud Rule:
OLD = None
NEW = Purchaser must attach documentation of purchase to tax return.

Toula N. Rosebrock (of Diane Turton, Realtors) – Broker / Sales Associate

Specializing in all of Ocean County - Lacey Township Real Estate, Forked River / Lanoka Harbor

Unique Name … Unique Agent … Unique Service!

Websites:

www.Toula.org

www.OceanCountyNJRealEstateSales.com

www.Toula.info

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