First Time Home Buyers Tax Credit Extension
On Nov. 6, 2009, President Obama signed the Unemployment Compensation
Extension Act (H.R. 3548) into law. It included, as an amendment, an
extension and expansion of the Homebuyer Tax Credit. All changes in the
bill became effective on Nov. 6 2009, the day the bill was signed.
The Homebuyer Tax Credit was extended for first-time homebuyers
who sign a binding contract by April 30, 2010 and close on the purchase
by June 30, 2010; and expanded to include a $6,500 credit for current
homeowners who purchase a new primary residence. Under the terms of the
legislation, "current" homeowners must have used the home they have
sold, or that is being sold, as their primary residence consecutively
for five of the past eight years. In addition, other eligibility
requirements apply, including income limits. For more information you can visit the National Association of Realtorsฎ and check their Frequently Asked Questions.
| FEATURE |
JAN. 1 - NOV. 30,
2009
RULES AS ENACTED
FEBRUARY 2009 |
NOV. 7 - APR. 30, 2010
RULES AS 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 |
Date of Enactment November 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 of the previous 8 years |
| Termination of Credit |
Purchases after November 30, 2009.
(Becomes April 30, 2010 on Date of Enactment
November 7, 2009) |
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 buyer would have to close on
the purchase by July 1, 2010 |
| Income Limits (Note: Increased income limits are effective as of date of enactment of bill November 6, 2009) |
$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
Effective Date of Enactment
November 7, 2009 |
| Purchase by a Dependent |
No Provision |
Ineligible
Effective Date of Enactment
November 7, 2009 |
| Antifraud Rule |
None |
Purchaser must attach documentation of purchase to tax return |
For additional information and to reach one of our agents, please fill out the
form below.
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South Carolina