Market Updates

Tax Credit Deadline Extension Passed Senate

July 1, 2010

Although the Extended Home Buyer Tax Credit expired on April 30, 2010, home buyers who signed a written, binding contract by that date and close before July 1, 2010 may still be able to claim the credit.
Congress has just passed the Homebuyer Assistance and Improvement Act (H.R. 5623), an extension of the Homebuyer Tax Credit closing deadline. The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The new closing deadline for eligible transactions is now September 30, 2010.
Extending the tax credit closing deadline will help provide additional stability to real estate markets across the nation, including here in California, where sales were up 1.2 percent last month from the previous year, due in large part to tax incentives. This heightened market activity has backed up lenders processing loans for these transactions. The extension provides more time for these transaction to be processed, allowing another opportunity for those who qualified for the original tax credit to realize the benefit.
As always, it is important that you consult with a tax expert about your financial and tax situation.

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