| Obama signs bill in November extending and expanding the $8000 first time home buyers tax credit. The modifications in the column labeled “December 1,2009 – April 30, 2010” became effective Nov 6, 2009. Here is an outline of the changes. |
| FEATURE | Jan 1, 2009 – November 30, 2009 | December 1, 2009 – April 30, 2010 |
| | Rules Enacted Feb 2009 | Rules Enacted November 2009 |
| First-time Buyer Amount of Credit | $8000 ($4000 married filing separate) | $8000 ($4000 married filing separate) |
| First-time Buyer Definition for Eligibility | May not have had an interest in a principal residence for 3 years prior to purchase | Same |
| Current Homeowner Amount of Credit | No Provision | $6500 ($3250 married filing separate) |
| Effective Date Current Owner | No Provision | 7-Nov-09 |
| Current Homeowner – Definition for Eligibility | No Provision | Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years |
| Termination of Credit | Purchases after November 30, 2009. (Becomes April 30, 2010 on Date of Enactment.) | Purchases after April 30, 2010 |
| Binding Contract Rule | None | 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) | $75,000 – single, $150,000 – married, Additional $20,000 phase out | $125,000 – single, $225,000 – married, Additional $20,000 phase out |
| Limitation on Cost of Purchased Home | None | $8000 November 7, 2009 |
| Purchase by a Dependent | No Provision | Ineligible November 7, 2009 |
| Anti-fraud Rule | None | Purchaser must attach documentation of purchase to tax return |
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| Source: National Association of Realtors |