On November 5, 2009, the House of Representatives passed H.R. 3548, the Worker, Homeownership, and Business Assistance Act of 2009 (the “’09 Act”) which the Senate had approved the day before. President Obama signed it into law on Friday, November 6, 2009.
Homebuyer Credit Extended and Liberalized
The ’09 Act provides the following….
- The credit is extended to taxpayers who enter a contract to purchase before May 1, 2010; the purchase must close before July 1, 2010.
- The maximum credit remains $8,000 ($4,000 for a married individual filing separately) or 10% of the purchase price for first-time homebuyers.
- The credit phases out for individual taxpayers with income between $125,000 and $145,000 ($225,000 and $245,000 for joint filers).
- Individuals (and spouses) who have maintained the same principal residence for any 5-consecutive year period during the 8-year period are treated as a first-time homebuyer. Their maximum credit amount would be $6,500 ($3,250 for a married individual filing separately).
- The credit cannot be claimed if the purchase price exceeds $800,000.
- You do not have to wait until the filing of the return to get the refund. You can elect to treat the purchase as made on December 31 of the prior year to accelerate the refund.
- Anti-abuse provisions have also been enacted as part of the Homebuyer Credit.