Closing Deadline for Home Buyer Tax Credit Extended to Sept. 30th

Washington has once again extended the closing deadline to qualify for the $8,000 first-time home buyer tax credit or the $6,500 current home buyer tax credit. The new closing deadline is September 30, 2010.

Unfortunately, Congress did not extend the purchase agreement deadline beyond April 30th. This means that only buyers who had entered into a purchase contract on or before April 30, 2010 will be eligible for the tax credit. The extended closing deadline will just give those buyers some additional time to close the sale beyond the prior June 30th deadline.

The extension of the closing deadline was necessary because some types of sales, such as bank owned properties and short sales, require more than the typical 30-60 days to close.

For more information about how the tax credit works, please see my prior posts:

Down to the Wire; Last Days to Qualify for the Home Buyer Tax Credit

First-Time Home Buyer Tax Credit Extended

TIMING IS EVERYTHING: First-Time Home Buyer Tax Credit Increased for 2009

For questions about the home buyer tax credit, please contact me or use my online legal services.

Related posts:

1. First-Time Home Buyer Tax Credit Extended
2. Down to the Wire; Last Days to Qualify for the Home Buyer Tax Credit
3. TIMING IS EVERYTHING: First-Time Home Buyer Tax Credit Increased for 2009.

Unless you’ve been living under a rock for the past year and a half, you’ve no doubt heard that the federal government is giving first-time and repeat home buyers a credit on their income taxes for buying a new home.  The credit was intended to spur activity in the stagnant real estate market and to give home buyers a cash incentive to invest in home ownership.

First-time home buyers may qualify for up to an $8,000.00 credit. A first-time home buyer is considered to be anyone who has not owned a primary residence in the last three years.

Current homeowners, who are selling their primary residence to purchase a new primary residence, may qualify for up to a $6,500.00 credit. The homeowner must have lived in their primary residence for at least five of the last eight years.

There are some income limits and other restrictions. For more information about how the tax credit works, see my previous post “Timing is Everything; First-Time Home Buyer Tax Credit Increased for 2009.”

Unlike last year, there is little chance that the tax credit will be extended beyond April 30th. But there’s still time to take advantage of the credit if you act quickly.

Contact me for more information.

Helpful reading:

Related posts:

1. Closing Deadline Extended to September 30th for Home Buyer Tax Credit
2. TIMING IS EVERYTHING: First-Time Home Buyer Tax Credit Increased for 2009.
3. First-Time Home Buyer Tax Credit Extended

The first-time home buyer tax credit has been extended to spur real estate sales.

So, if you’ve been thinking of buying your first home, you can still take advantage of this popular tax  credit.

For more information about how the tax credit works, see my previous post “Timing is Everything; First-Time Home Buyer Tax Credit Increased for 2009.”

The tax credit may also be expanded to more than just first-time home buyers. If the measure is approved by Congress, then repeat buyers will receive a $6,500 tax credit for purchasing a new home.

For more information, contact Attorney Chris Ratté.

NOTICE: The information and articles posted on this website are for informational purposes only and are not intended as legal advice. Contact me to discuss your particular situation or consult a licensed attorney in your state.

Related posts:

1. Closing Deadline Extended to September 30th for Home Buyer Tax Credit
2. TIMING IS EVERYTHING: First-Time Home Buyer Tax Credit Increased for 2009.
3. Down to the Wire; Last Days to Qualify for the Home Buyer Tax Credit

The 2009 home buyer credit is a true “refundable” tax credit, which means that: (1) the taxpayer gets to take the credit whether or not they owe that much in taxes and (2) the taxpayer does not have to pay it back. This is a substantial improvement over the $7,500.00 tax “credit” passed by the Bush Administration in 2008. If you bought your home in 2008 you will be able to take a $7,500.00 tax credit, but you will have to pay it back over fifteen years. In essence, the 2008 credit was not a credit at all but a zero-interest loan from the government.

There are some limitations on the 2009 credit. First, the amount of the credit is limited to 10% of the purchase price of the home or $8,000.00, whichever is less. With the exception of some condos and small houses, however, most homes will max out the credit. Second, the credit is limited to single home buyers with an adjusted gross income of $75,000.00 or married buyers with an AGI of $150,000.00 or less. Taxpayers with higher incomes may be eligible for a reduced credit. Third, taxpayers must own the home for at least three years. If you sell your home within three years, you may have to repay the credit to the government. Lastly, the credit is only available to first-time home buyers. This may not be quite as limiting as you think, however, as the term “first-time home buyer” is defined as any person who has not owned a primary residence in the last three years. If you owned a home more than three years ago, you may still qualify. Even if you currently own other real estate, such as investment property or a vacation home, you may still qualify for the credit.

For a free consultation to learn more about the First-Time Home Buyer Tax Credit, contact Attorney Chris Ratté.

NOTICE: The information and articles posted on this website are for informational purposes only and are not intended as legal advice. Contact me to discuss your particular situation or consult a licensed attorney in your state.

Related posts:

1. Down to the Wire; Last Days to Qualify for the Home Buyer Tax Credit
2. Closing Deadline Extended to September 30th for Home Buyer Tax Credit
3. First-Time Home Buyer Tax Credit Extended