Have you recently purchased a home? Plan to purchase in the near future??
January 19th, 2010
The Worker, Homeownership, and Business Assistance Act of 2009 (2009 Worker Act) extends the first-time homebuyer credit (FTHBC) to qualified purchases before May 1, 2010, and provides several other enhancements and modifications.
Extension. Under the 2009 Worker Act, the FTHBC as extended can be claimed for qualified purchases after April 8, 2008, and before May 1, 2010. This extension also applies if you enter into a written binding contract before May 1, 2010 and close on the qualified purchase before July 1, 2010.
Long-time residents of same principal residence. The 2009 Worker Act provides a reduced refundable FTHBC of $6,500 ($3,250 for married separate filers) for the purchase of a new home if you owned and used your current home as a principal residence for five consecutive years during the eight-year period ending on the date you purchase a new principal residence.
Limitations. Under the 2009 Worker Act, the first-time homebuyer credit is not permitted with respect to a purchase:
* for a personal residence with a purchase price exceeding $800,000;
* if you are under 18 years of age (if married, at least one spouse must meet the age requirement);
* if you can be claimed as a dependent of another taxpayer; and
* for property acquired from your spouse.