Advertisement
Tax Breaks

Home-Buyer Tax Credit Extended

Tens of thousands of home buyers who were in jeopardy of losing a valuable tax credit have been granted a three-month reprieve.To qualify for the home-buyer tax credit -- worth up to $8,000 for first-time buyers and up to $6,500 for longtime residents of their previous homes -- a buyer had to sign a binding contract by April 30, 2010, and close on the deal by June 30.

Tens of thousands of home buyers who were in jeopardy of losing a valuable tax credit have been granted a three-month reprieve.

To qualify for the home-buyer tax credit -- worth up to $8,000 for first-time buyers and up to $6,500 for longtime residents of their previous homes -- a buyer had to sign a binding contract by April 30, 2010, and close on the deal by June 30. Now, home buyers who signed sales contracts before May 1 have until September 30 to complete the transaction. The problem, according to the National Association of Realtors, was that as many as 180,000 buyers who met the April 30 purchase deadline were unable to close by June 30.

Advertisement - Article continues below

This was a particular problem for people buying foreclosed properties; working through the complexities of such deals simply takes more time. NAR president Vicki Golder, of Tucson, Ariz., says that these buyers were "at the mercy of a work-flow jam with lenders' that could cost them the credit. Lawmakers agreed that prospective home buyers shouldn't be penalized by lenders' delays.

Buyers who meet the new deadline don't have to wait until they file their 2010 federal tax return to claim the credit; they can get their cash faster by filing an amended 2009 return.

Advertisement

Most Popular

What Are the Income Tax Brackets for 2020 vs. 2019?
tax brackets

What Are the Income Tax Brackets for 2020 vs. 2019?

The IRS unveiled the 2020 tax brackets, and it's never too early to start planning to minimize your future tax bill.
June 20, 2020
Tax Changes and Key Amounts for the 2020 Tax Year
tax law

Tax Changes and Key Amounts for the 2020 Tax Year

Americans are facing a long list of tax changes for the 2020 tax year...and it's never too early to start thinking about next year's return.
June 22, 2020
10 Tax Breaks for the Middle Class
tax deductions

10 Tax Breaks for the Middle Class

Tax breaks aren't just for the rich. There are plenty of them that are only available to middle- and low-income Americans.
June 30, 2020

Recommended

13 Tax Breaks for Homeowners and Home Buyers
income tax

13 Tax Breaks for Homeowners and Home Buyers

Owning (or buying) a home is expensive. But at least there are some tax deductions, credits, and exclusions that can help you recoup some of those cos…
June 22, 2020
12 Things Every Home Buyer Should Do
real estate

12 Things Every Home Buyer Should Do

Buying a home may be one of the biggest purchases you will ever make.
June 12, 2020
11 Things Every Home Seller Should Do
real estate

11 Things Every Home Seller Should Do

As a home seller, your goal is to sell your property quickly for the most money possible.
June 12, 2020
13 Reasons You Will Regret an RV in Retirement
retirement

13 Reasons You Will Regret an RV in Retirement

RV-loving retirees talk about the downsides of spending retirement in a motorhome, travel trailer, fifth wheel or other recreational vehicle.
June 8, 2020