Tax Relief News: Homebuyers In Process May Benefit From Tax Credit Deadline Extension
If you’ve been dipping your feet in the homebuyers’ market this year and are in the process of purchasing your new home, but have not finalized your transaction yet, you may still be able to receive the homebuyers tax credit for your tax return. The first-time homebuyer tax credit is a tax break of up to $8,000 for qualified taxpayers who are in the process of buying their home – this means having signed a sales contract by the end of April and a complete transaction by end of June.
The good news is that if you have signed your sales contract, but have so far been unable to complete the purchase transaction due to delays and paperwork jams with lenders, you may get an extension on qualifying for the tax credit – all dependent on Congress passing an amendment for a tax extension bill, which would push the date from June 30 to September 30.
Not everyone qualifies for this tax credit and I’ve previously blogged about common misconceptions about the first-time homebuyer tax credit. If you are planning on taking advantage of this tax credit, knowing these rules and filing an accurate tax return is important if you want to avoid tax audits and stay out of IRS trouble!
It is worth to note that the possibility of extra time to close your transaction is for home buyers who are looking for just that – closing their transaction. This means you already have a sales contract. This tax credit extension is not meant for new buyers who are just starting to peruse the home buying market.
Reason for possible extension: With lower prices and cheap mortgage rates seen during the shaky economy, there has been an increase in buyer demand, which has resulted in an overwhelmed real estate industry that is unable to process all transactions within the regular time frame. Therefore, due to this back-log of transactions, thousands of first-time homebuyers will be unable to finalize their purchase by June 30.
At present this extension is only a possibility that could become a reality if passed by Congress. For the time being, keep an eye out until June 30th! For further details, read the full article, “Homebuyer Tax Credit Closing Deadline May Be Extended” on USNews.com.
Tax Resolution Services, Co. is a team of expert tax attorneys and tax specialists that can help you if you need IRS tax relief. If you owe $15,000 or more to the IRS or have 3+ years of unfiled tax returns, call our office today at 1-866-IRS-PROBLEMS or visit www.taxresolution.com for a free, no-risk tax resolution consultation.
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Tags: income tax relief, IRS audit, tax advice, tax relief
June 23rd, 2010 at 12:10 pm
has the deadline to close beene xtended past 6/30?
June 24th, 2010 at 9:37 am
Hi Susan,
Thank you for your comment. At present, there is no further news on the extension of the tax credit for first time homebuyers. Congress will hopefully pass the amendment before June 30th. Please keep checking our blog (http://www.taxresolution.com/blog/) for the latest news on the matter.
Thanks!