Extended Home Buyer Tax Credit 2009/2010

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed the following legislation to:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant a credit of up to $6,500 to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

If you have specific questions or need clarification, contact a tax professional or the IRS at 800-829-1040.

Who Qualifies for the Extended Credit?

First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010. You must have a ratified (binding) contract by April 30, 2010 and it must close no later than June 30, 2010 to qualify for the credit.

Current home owners purchasing a home during the above mentioned period who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight. The key word is "vacated." You may not have to sell the property, which leaves renting as a viable option.

To qualify as a "first-time home buyer" the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Claiming the Credit 

According to Realtor.org, homebuyers may:

• claim the credit on their 2009 return, even if the purchase is completed after December 31, 2009;
• File an amended return for 2009 if their purchase is completed after April 15, 2010; or,
• Claim the credit on their 2010 tax returns.

Check with your tax accountant on this. Some have reported that an amendment may take longer than claiming it on your current returns How to Get the Extended Credit.

What Properties are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences including single-family homes, condos, townhomes and coops.

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How to Get the Tax Credit

Frequently Asked Questions

Source: National Association of Realtors