Accountants? new income limits on tax credit, am I now eligible? (loan, 2009)

[superfly10]

Wife and I closed on our first house in late August. Income was above the limits for the first time homeowners credit at the time (which was 150K for couples)

part of the new "extension" of the tax credit includes an increase in the income limit to 225K for couples, so we would be able to apply.

Here is my question. Will the increase in credit limit apply to homes purchased this tax year, or only homes purchased after the extension takes effect? am I out of luck because I closed already?

[jas1999]

No one should be able to give you a good answer yet. The extension has passed only the senate and numbers as well as dates can change before it clears the house and is signed by the president.

Although I will say since they did not retro for those who got the $7,500 loan they will probably not retro this.

[SadieLu]

No, sorry...the new income provision takes effect 12/01/2009.
Senate, House Votes Unanimously to Extend Homebuyer Tax Credit - AOL Real Estate

[bow5965]

So what if I lived in my old house for 5 years and closed on a new one on 10/1/09. Am I now eligible for the $6500 credit?

[rjrcm]

Originally Posted by bow5965

So what if I lived in my old house for 5 years and closed on a new one on 10/1/09. Am I now eligible for the $6500 credit?

No. Assuming nothing changes by the time Obama signs it, the new credit plan takes effect December 1, 2009. You would have to close your purchase after that date.

[rjrcm]

Originally Posted by rjrcm

No. Assuming nothing changes by the time Obama signs it, the new credit plan takes effect December 1, 2009. You would have to close your purchase after that date.

After doing more research, it appears that some parts of the new plan take effect on the day of enactment (probably 11/6), such as the higher income limits and the $6500 credit for current homeowners. 10/1/09 closing still would not be eligible.