Central Florida Real Estate Blog

November 5, 2009

According to Charles McMillan, 2009 National Association of Realtors (NAR) President, Congress has answered our call to extend and expand the homebuyer tax credit! Both the House and the Senate have passed an unemployment insurance bill, which includes an amendment that expands and extends the tax credit. That bill will be sent to President Obama for his signature in the next day or so. This is great news for first time homebuyers and current homeowners who will now be eligible for a tax credit up to $6,500.00.

Below is a comparison chart for review of the new tax credit extension and expansion:

FEATURE	Jan. 1–Nov. 30, 2009 Rules as enacted February 2009	December 1 – April  30, 2010 Rules as enacted   November 2009
First-time Buyer –Amount of Credit	$8000.00 ($4000.00 married filing separately)	$8000.00 ($4000.00 married filing separately)
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	$6,500.00 ($3,250.00 married filing separately)
Effective Date –Current Owner	No Provision	Date of Enactment
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)	$75,000.00 – Single $150,00.00 – Married Additional $20,000.00 phase out	$125,000.00 – Single $225,00.00 – Married Additional $20,000.00 phase out
Limitation on Cost of Purchased Home	None	$800,000.00 Effective Date of Enactment
Purchase by a Dependent	No Provision	Ineligible Effective Date of Enactment
Antifraud Rule	None	Purchaser must attach documentation of purchase to tax return.

If you would like additional information, or are a first-time homebuyer looking to take advantage of the $8,000.00 tax credit, please contact Joe Bornstein, Rock Springs Realty at (877) 333-2811 or email at joe@rockspringsrealty.net.

As one of Central Florida's leading Real Estate Brokerages, we offer all forms of Residential, Commercial, and Investment Real Estate services. Our staff is dedicated to providing our clients with the finest customer service available in the industry today. Visit our corporate website at www.rockspringsrealty.net