Category Archives: and Business Assistance Act of 2009

The Worker, Homeownership, and Business Assistance Act of 2009

WHAT DOES IT MEAN FOR CURRENT HOMEOWNERS?

Special Rule for Current Homeowners
Taxpayers who are considered “long-time residents” of the same principal residence are now eligible to claim a credit that is equal to the lesser of a) 10% of the purchase price, or b) $6,500 ($3,250 MFS) of a subsequent principal residence. A long-time resident is one who has owned a home and used it as a principal residence for any 5 consecutive years during the 8-year period preceding the purchase of the subsequent principal residence.

This provision is effective with homes purchased after November 6, 2009. All other new rules (new phase-out range, purchase price cap, last date available for the credit) apply as well. There is no requirement that the taxpayer sell the first residence-it can be sold, converted to rental property, given as a gift, etc. as long as the taxpayer occupies the subsequent home as a principal residence.