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Have no fear the tax break is still hear (if you were in contract by April 30th)

June 16, 2010

Today the Senate wisely voted to extend the tax credit deadline for buyers who were in contract as of April 30th but were in danger of not closing their sales prior to the June 30th deadline. The new deadline is for closing those sales is September 30th, 2010.

Here’s what Reuters has to say about it:

UPDATE 1-Senate votes to extend US home tax credit deadline

June 16 (Reuters) – The U.S. Senate voted on Wednesday to give homebuyers another three months to settle on their contracts and take advantage of a popular tax credit that sparked a rush of activity in the housing market.

The Senate, with a vote of 60-37, accepted an amendment by Democratic Leader Harry Reid that extends the closing deadline to Sept. 30 for buyers who met the April 30 deadline to have a signed contract.

The current deadline requires buyers to close by June 30 to get the $8,000 tax credit for first-time homebuyers. Existing homeowners buying a new primary residence are eligible for a $6,500 credit.

Reid offered the measure as an amendment to a bill that would extend some popular business tax breaks and extend unemployment insurance benefits for jobless workers.

The proposal would not have a significant impact on future home sales as the extension would be only for home buyers who already had a contract in hand by April 30.

The popularity of the tax credit has caused some anxiety because settlement offices are inundated with buyers trying to close on transactions by the end of this month to get the tax break. (Reporting by Donna Smith; Editing by John O’Callaghan)

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