Walter & Shuffain, P.C.
Certified Public Accountants & Business Advisors
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The Worker, Homeownership and Business Assistance Act extends certain provisions of the original "stimulus" package from the American Recovery and Reinvestment Act of 2009 and extends the first-time home buyers credit of a maximum of $8,000 from November 30, 2009 through April 30, 2010. This credit is available for first-time homebuyers who have not owned a principal residence during the three year period up to the date of this purchase. Please see the August 2009 Tax Tip for additional information on the first-time homebuyer tax credit.
In addition to the first-time homebuyer, the new law opens up the credit to "long-time residents" who do not qualify as first-time homebuyers. Long-time residents are classified as anyone who has owned and used the same residence as their principal residence for at least five consecutive years during the last eight years ending on the date of purchase of the new home as a principal residence. This credit is for $6,500 ($3,250 for married filing separately) and the phase-out of the credit starts at $125,000 of modified adjusted gross income (MAGI) for single taxpayers and $225,000 for married filing joint returns.
For qualifying purchases under the "long-time resident" provision in 2010, taxpayers have the option of claiming the credit on their 2009 or 2010 tax returns.
In addition, there are new restrictions on purchases after November 6, 2009 that are included in the new law:
If you would like more detailed information, please do not hesitate to contact us.