Will the Buyer Tax Credit Be Extended?

According to a NY Time article, both the Senate and the House have now passed a bill which would extend the tax credit for 3 months.

This only extends the tax credit for those who were already in escrow by the April 30, 2010 deadline; it does not allow more people to initiate and escrow or purchase at this time to get the tax credit.

This was done because thousands of buyers stood to lose the credit for failure to close timely.  The lenders and escrow companies I’ve spoken to this week have been crazed trying to close as many sales as possible.

According to California Association of Realtors (CAR), over 17,000 buyers in California alone were expected to be effected if the tax buyer credit wasn’t extended.

Now that it has passed both the Senate and the House, if President Obama signs it tomorrow, buyers will have until September 30, 2010 to close their transactions and still qualify for the tax credit.

We offer neither tax nor legal advice and this should not be construed as such.  Please check with your advisors to see if you qualify for a tax credit.