Home Buyer Tax Credit closing deadline extended!

1 Jul

The Home Buyer Tax Credit, part of the Homebuyer Assistance and Improvement Act (HR 5623), initially required an executed purchase agreement on or before the end of April, 2010, with a closing deadline of June 30, 2010.  Congress just acted to pass an extension to the closing deadline (though the purchase agreement deadline remains unchanged).  Now, the transaction must close by September 30, 2010 (rather than the June 30 deadline) to obtain the credit.

Although home buyers and sellers would be well advised to speak with their accountant/CPA/tax advisor to discuss the particulars of the program and the applicability of the tax credit to their indivdiual situation, this closing extension provides a great deal of flexibility to those who were unable to close by June 30 due to failure to obtain short sale approval, failure to obtain financing, difficulty in obtaining a closing date, or any other delay.

If you have any questions about the legal issues about the enforceability of your contract, the potential for assigning a contract, amending a contract to change the closing date or the like, you should discuss those issues with your attorney.  Issues related to the applicability or specifics of the tax credit should be addressed with your accountant.  Some general information about the tax credit (which can be $6500 or $8000 depending on whether the buyer is a first-time homebuyer) can be found at the IRS website, here: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

More information about the extension can be found here: http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit

You will note that this blog post/update, by Thomsen Nybeck, is so current that the IRS.gov website still reflects the June 30, 2010 closing date.

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This blog entry is written by Brad Boyd, a Shareholder at Thomsen Nybeck. Brad is the chair of the firm’s Transactional Group, and his practice focuses primarily in Real Estate, Real Estate Brokerage, Business and Corporate law, and Wind Energy Law.  Brad provides legal advice, guidance, and representation related to risk management in a wide variety of real estate and business law matters.  He is counsel to the Minnesota Association of Realtors, many individual Realtors and brokerages, business clients and individuals.
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