More Time for Tax Credit?

First-time home buyers looking to land the $8,000 federal income tax credit may now have a little more time to close on their purchases if a Senate amendment unveiled last Thursday, June 10th, makes it into law.

As you may know, home buyers must have had signed contracts by April 30th, and must close the deal by June 30th. They could be eligible for an $8,000 tax credit if they are first-time home buyers, or a $6,500 credit if they owned and lived in their previous home for five of the last eight years.

The closing deadline, however, could be pushed back to September 30th under an amendment offered by Senate Majority Leader Harry Reid, D-Nevada, Senator Johnny Isakson, R-Georgia, and Senator Chris Dodd, D-Connecticut. The senators said they want to make sure the banks have time to process the transactions – especially short-sales – which are a much more involved process.

Nobody is quite sure whether the amendment will go anywhere, as it’s part of a controversial jobs and tax bill that may be radically changed before the Senate approves it. Lawmakers are not scheduled to vote on the bill until sometime this week, at the earliest. Stay tuned!

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