The Homebuyer Tax Credit that was set to expire on June 30, 2010 has been extended to September 30, 2010. According to an article by Kay Bell from Don’t Mess With Taxes, the credit was extended by the Senate on Wednesday night:
With the tax credit’s settlement deadline ticking down, the Senate late Wednesday approved by unanimous consent a measure identical to the one passed Tuesday by the House.
That means the extended-yet-again homebuyer tax credit bill is on its way to Obama so his signature can make it law.
Keep in mind that this latest extension only extends the deadline of the closing date of your purchase. The April 30, 2010 deadline for entering into a contract has not changed. All that this latest bill does is help those who signed a contract on a house on or before 4/30/10 and were not able to close before 6/30/10:
Remember, this latest piece of legislation is only for folks who had a contract in place by April 30, but couldn’t finalize the purchase by the previous June 30 due date.
Now first-time buyers, who can claim a credit of up to $8,000, as well as eligible repeat buyers, whose credit maximum is $6,500, have until Sept. 30 to close on their residences.
There has been a lot of opposition to this bill, and many thought that it wouldn’t pass. This was mainly because it was combined with a measure that was much more unpopular:
The breakthrough came when Senate Democrats decided to pull the homebuyer tax provision out of the bill that also would have authorized additional unemployment benefits for around 1.7 million folks looking for work. Majority Leader Harry Reid (D-Nev.) was one vote shy of the 60 needed to move the combination bill forward.
Most of the opposition was aimed at the measure to extend unemployment benefits, and it seems that the thought was that the homebuyer tax provision would be enough to push the unemployment extension through.
Now that the bill has been passed, I’m sure we’ll see our fair share of fraud. I wonder how many late homebuyers will pre-date contracts to before 4/30? I’m sure that many people will purchase a home that needs a lot of renovating, and it may even call for CAD services!
How many of you have taken advantage of this credit? Did it influence your decision to purchase a home? Do you think that this will be renewed and show up again as part of the 2011 tax credits? Do you think that it has stimulated the housing market? If current purchases counted, would you buy a home today to get the credit? Do you think this is a waste of time and money?
To find out more about tax credits, deductions, and tax planning, visit our tax center: http://knsfinancial.com/taxes/
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© 2010 – 2011, Khaleef Crumbley. All rights reserved.
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