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					First-Time Homebuyer Tax Credit Comparison                                                                MORTGAGE"

The cha rt below provid es a hi gh -level compariso n betwee n t he 2008 tax credit enacted i n Ju ly 2008 and
the 2009 tax credit that was incl uded in t he Americ an Recove ry and Rei nvest ment Act of Feb rua ry 2009 .*

Major Modifications Italicized

  Feature                    Original credit created July 2008                  Revised credit - February 2009

  Definition of first-time   Buyer (and buyer's spou se) may not                No change
  homebuyer                  have owne d a princ ipal resi dence for
                             3 years prior to purchas e

 Amount of tax credit        10% of the pu rch ase price or $7,500,             Maximum credit amount
                             which ever is less                                 increased to $8.000

 True credit or              The cre dit must be repaid-6.6 7% of               True credit-unless the home is sold
 repayment?                  credit or $500 each year for 15 years,             within three years. at which point
                             startin g with 2010 tax fili ng; if the ho me      the first-time homebuyer (who is
                             is so ld before this, the balance must be          now the seller) must repay the entire
                             repa id at closing                                 amount to the IRS at closing

 Effective dates             App lies to homes purchased between                Applies to homes purchased
                             April 9, 2008 and Decem ber 30, 2008               between January 1. 2009 an.d
                             with repayment starting in 201 0                   November 30. 2009

 Tax implications            Re duces (o r can eli minate) inco me tax          No change
                             liability for the year of purchase; e.g.,
                             buyers will pay less tax or recei ve a
                             bigger re fund

 Eligible properties         Any si ngle fam ily resid ence (includ ing         No change
                             condos, co-ops, tow nh ouses, etc.) that
                             will be used as a principal resid ence

 Income limits               Fu ll cred it fo r ind ividuals with a modi fied   No change
                             ad justed gross incom e of $75,000
                             or less ($150,000 on a joint return) ;             "
                             partial credit for incom e from $75,000
                             to $95,000 ($150,000 to $170,000 on a
                             jo int ret urn)

 For more information, contact your
 local Mortgage Advisor or call:                                                (877) C21·MORTGAGE
                                                                                 toll-free       (877) 221-6678

                                                                                                                        01QS4 12-{)2-{)9
  First-Time Homebuyer Tax Credit                                                                  MORTGAGE"

                                        A new tax credit is available for first-tim e home buyers under the
                                        American Recovery and Reinvestment Ac t of 2009. If th ey close on a
                                        home between Jan uary 1, 2009 and November 30, 2009, they may be
                                        eligible to receive a tax credit for 10% of th e purcha se price of their
                                        home-up to $8,000. Program highlights includ e:

                                        • 	 Any individual (and if married, their spo use) who has had no
                                            ownership interest in a princip al residence during the last three
                                            years is eli gible                                     ­

                                        • 	 Fu ll credit for si ngle taxpayers w ith incomes up to $ 75 ,000
                                            ($ 150,000 on a joint return); partial cre dit for incomes up to
                                            $95,000 ($1 70,000 joi nt return)

                                        • 	 Applies to t he purchase of a si ngle-family home (i ncl uding cond os,
                                            co-ops, town homes, etc.) that will be used as a principal residence

                                        • 	 Hom ebuyers can reduce (or eve n elimi nate) their incom e tax
                                            liability for the year of purchase by claiming the credit on
                                            their tax return*

                                        • 	 If the home is sold with in 3 yea rs, the first-time ho mebuyer
                                            (who is now the seller) mus.l: pay t he IRS the ent ire amount of
                                            the tax credi t at closi ng

                                        We make home loans easy.
Have your customers contact your
local Mortgage Advisor today or call:   Now is t he ideal tim e for your first-time homebuyers to co ntact us
                                        to discuss their home fi nancin g options. In as little as 20 minutes,
                                        we'll give them a free mortgage pre- approval decision, so they' ll
 (877) C21-MORTGAGE 
                   know how much house they can afford. We'll make it as easy as
   loll-free     (877) 221-6678         possible for your customers to enjoy th e fi nan ci al adva ntages of
                                        t he new tax credit.

                                            NAR Issue Brief
                               Homebuyer Tax Credit Changes                                         
National Association of REALTORS Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
Congress has extended and expanded the homebuyer tax credit.  The modifications in the column labeled 
“December 1 – April 30, 2010” become effective when President Obama signs the bill.  All changes made 
to the current credit become effective on that date, as well.
                 FEATURE               Jan 1 – November 30, 2009         December 1 – April 30, 
                                             Rules as enacted            2010 Rules as enacted  
                                              February 2009                  November 2009 
        First­time Buyer –                         $8000                            $8000  
        Amount of Credit                      ($4000 married                  ($4000 married  
                                              filing separate)                filing separate) 
        First­time Buyer –            May not have had an interest                      
        Definition for Eligibility     in a principal residence for 3               Same 
                                          years prior to purchase 
        Current Homeowner –                     No Provision                        $6500  
        Amount of Credit                                                      ($3250 married  
                                                                              filing separate) 
        Effective Date –                        No Provision                            
        Current Owner                                                       Date of Enactment 
        Current Homeowner –                     No Provision            Must have used the home 
        Definition for Eligibility                                        sold or being sold as a 
                                                                            principal residence 
                                                                        consecutively for 5 of the 
                                                                             previous 8 years 
        Termination of Credit                 Purchases after                 Purchases after  
                                            November 30, 2009.                 April 30, 2010 
                                        (Becomes April 30, 2010 on 
                                            Date of Enactment.) 
        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                         $75,000 – single               $125,000 – single 
        (Note:  Increased income            $150,000 – married             $225,000 – married 
        limits are effective as of    Additional $20,000 phase out      Additional $20,000 phase 
        date of enactment of bill)                                                   out 
        Limitation on Cost of                       None                          $800,000 
        Purchased Home                                                 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 

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