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  • Homebuyer Tax Credit - Important information

    On Nov. 6, 2009, President Barack Obama signed the Workers, Homeownership and Business Assistance Act, which extended the tax credit to those who purchase a home or have one under contract to April 30, 2010. The law went into effect immediately.

    The $8,000 tax credit is still for first-time homebuyers or for those who have not owned a home in three or more years. The new law expands the program to include homeowners who have owned a home for five or more years, and qualifies them for up to $6,500 in tax rebates.

    If you are planning on buying a home by April 30, 2010, you can use this chart to determine if you qualify for a homebuyer tax credit.

    Important information about the HOMEBUYER TAX CREDIT
    Feature Jan. 1 - Nov. 30, 2009
    Rules as enacted February 2009
     
    Nov. 7 - April. 30, 2010
    Rules as enacted November 2009
    First-time Buyer Amount of Credit $8,000 ($4,000 married filing separate)  $8,000 ($4,000 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 $6,500 ($3,250 married filing separate)
    Effective Date Current Owner No provision Nov. 7, 2009
    Current Homeowner Definition for Eligibility No provision Must have used the home sold or being sold as a principal residence consecutively for 5 years of the previous 8 years
     
    Termination of Credit Purchases after Nov. 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 $800,000 - Nov. 7, 2009
    Purchase by a Dependent No provision Ineligible - Nov. 7, 2009
    Anti-fraud Rule None Purchaser must attach documentation of purchase to tax return
     
     

    Learn more about the First-Time Homebuyer Tax Credit 

    To learn more on how you may be able to take advantage of the Homebuyer Tax Credit, as well as learn more about the loan programs Tech CU offers, speak with a Tech CU Mortgage Consultant at (800) 553-0880 or stop by one of our conveniently located Financial Centers.