Great News for First-Time Homebuyers Who Failed to Close by June 30

First-time homebuyers will have until Sept. 30 to close on their purchases and still receive an $8,000 tax credit under a bill passed by the Senate late Wednesday. The House overwhelmingly approved the bill on Tuesday.

President Obama is expected to sign the bill. The deadline had been June 30.

The bill doesn't extend the benefit to anyone currently shopping for a home. Buyers must have signed a contract by April 30 to qualify for the tax break. At issue is when the deal must be finalized. Many buyers who signed contracts by April 30 ran into delays that prevented the deal from closing by June 30. The extra 3 months granted by this bill is of great benefit to those buyers.

Qualified existing homeowners also have until Sept. 30 to close on new homes and receive a tax credit of up to $6,500.

William Deutchman, CPA www.wddcpa.com