Tax Credit Closing Extended
On June 30, both houses of Congress approved legislation that extends the closing deadline for qualified first-time and repeat home buyer tax credit purchases from June 30, 2010, to Sept. 30, 2010. President Obama signed The Homebuyer Assistance and Improvement Act of 2010 into law soon afterward.
The extension only applies, however, to those home buyers who had a binding sales contract in place prior to May 1, 2010. For home builders and lenders, this legislation provides an additional three months to complete construction and backlogged paperwork in order for home buyers to close on the home and still receive the tax credit. The $140 million cost of the extension is completely paid for by several small revenue raisers, including a provision that increases the penalties associated with bad electronic payments of tax liability.
As of May 22, the Department of the Treasury indicates that for the tax credit program as a whole, more than 3 million home buyers have claimed the credit for a total tax savings of more than $21 billion. The extension will help thousands of otherwise qualified home buyers claim the credit for sales that weren't able to close in time due to conditions beyond the buyer's control.
Author: CRBRA Admin | On: July 12, 2010 | In: Members · Consumers | No Comments
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