Homebuyer Credit Extended to September 30, 2010

Homebuyer Credit Extended to September 30, 2010

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Kay Bell reports that the extension of the homebuyer credit was passed last night in the Senate:

If you went to be last night freaking out that you wouldn’t be able to claim the first-time homebuyer credit, here’s some welcome wake-up news.

It’s official. You now have three more months to finalize your home purchase.

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.

But Kay points out that the extension doesn’t apply to new home purchase contracts (emphasis mine): 

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.

Prediction: We recently reported that the Homebuyer credit has been rife with fraud. Expect more of it as taxpayers back date their real estate contracts to meet the April 30th contract-in-place requirement.

About Peter Pappas

Peter is a tax attorney and certified public acccountant with over 20 years experience helping taxpayers resolve their IRS and state tax problems.

He has represented thousands of taxpayers who have been experiencing difficulty dealing with the Internal Revenue Service or State tax officials.

He is a member of the American Association of Attorney-Certified Public Accountants, the Florida Bar Association and The Florida Institute of Certified Public Accountants and is admitted to practice before the United States Tax Court, the United States Supreme Court, U.S. District Courts - Middle District of Florida