Homebuyer Tax Credit
Updated February 2010

Homebuyer Tax Credit Ends in

In November 2009, Congress extended and expanded the homebuyer tax credit. Tax credits directly reduce the amount of taxes you owe. Below is a summary of the tax credit. Be sure to consult with a tax advisor to determine if you qualify!

FIRST-TIME HOMEBUYERS

• The first-time homebuyer tax credit has been extended until April 30, 2010.
• First-time homebuyers that meet the qualifications are eligible for up to $8,000.
• First-time homebuyers may not have had an interest in a principal residence for 3 years prior to purchase.

CURRENT HOMEOWNERS

• The tax credit has also been expanded to current homeowners.
• Current homeowners that meet the qualifications are eligible for up to $6,500.
• Current homeowners must have used home as a principal residence consecutively for 5 of the previous 8 years.

LIMITATIONS

• The credit applies only to homes under contract by April 30, 2010 and closed by July 1, 2010.
• The tax credit is equal to 10% of the purchase price up to $8,000 for first-time homebuyers and $6,500 for eligible current homeowners.
• There is an $800,000 limit on the cost of the purchased home.
• Income limits apply. The credit begins to phase out at adjusted gross income levels of $125,000 (single) and $225,000 (married).
• Purchases by a dependent are ineligible.
• Purchasers must provide documentation of the purchase with their tax return.
• If the property is sold within 3 years from the date of purchase, the buyer must pay back the full amount of the credit.

ADDITIONAL RESOURCES

• Save Now with the Homebuyers Tax Credit – Brochure from the National Association of REALTORS® (NAR)
  
• NAR Issue Brief – Homebuyer Tax Credit
  
• Homebuyer Tax Credit Details from the IRS
  

REALTOR^® Nationwide Open House Weekend

REALTORS® around the nation will be holding open houses on the weekend of April 10-11, 2010! Thousands of people who have listed their home for sale will open their doors to you with a REALTOR® as host. Look for the blue REALTOR® balloons!

How is this weekend different than any other weekend in April?This is a great opportunity for consumers to shop for a new home while:

• Home prices are lower.
• Interest rates are still low.
• There are a variety of home choices.
• The homebuyer tax credit is still available.

Eventually, home prices and interest rates will climb, inventory will become scarce and the tax credit will be gone. So get out and visit all the open houses in your area on April 10-11. After all, one of the open houses you visit may be the home you’ve been looking for.

Agents: Learn more.
Local Associations:Get details.