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HOMEBUYER TAX CREDIT EXTENSION
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As Modified in the Unemployment Insurance bill (effective November 6, 2009) EFFECTIVE FOR PURCHASES ON OR AFTER NOVEMBER 6, 2009 AND A RATIFIED CONTRACT ON OR BEFORE APRIL 30, 2010 (CLOSING MUST OCCUR WITHIN 60 DAYS OF APRIL 30, 2010) | FIRST-TIME HOMEBUYERS | An $8,000 tax credit is available to first-time homebuyers. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years prior to purchase to meet first-time homebuyer definition. | EXISTING HOMEOWNERS | A $6,500 credit is available to homebuyers who have owned and lived in a home for 5 consecutive years of the last 8 years. | ELIGIBLE PROPERTY | Any single family residence (including condos, co-ops and townhouses) that will be used as the principal residence. | REFUNDABLE | Yes. Reduces (or, can eliminate) income tax liability for the year of the purchase. Any unused amount of tax credit will be refunded to the homebuyer. | INCOME LIMIT | Yes. Full amount of credit available for individuals with adjusted gross income of no more than $125,000 or joint gross income of no more than $225,000. The credit is phased out to lower amounts for individuals and joint filers with higher gross incomes. | PURCHASE PRICE LIMITATION | The credit is available only for the purchase of principal residences with a purchase price of $800,000 or less. | RECAPTURE | None, unless the home is sold within three years of the purchase. If the home is sold within three years original purchase, the entire amount of credit is recaptured upon sale. Recapture provision is waived for military personnel relocating due to orders. | MILITARY PERSONNEL | Credit extended for one year after expiration date for any military personnel that is serving outside United States for at least 90 days in either 2009 or 2010. | TERMINATION | Must have a ratified contract on or before April 30, 2010 and close within 60 days of April 30, 2010. | ANTI-FRAUD MEASURE | Purchaser must attach documentation of sale to tax return. | EFFECTIVE DATE | December 1, 2009 |
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