Following the third unsuccessful attempt by Senate Majority Leader Harry Reid (D-Nevada) who proposed the extension, President Obama is now expected to sign the bill to extend the First Time homebuyers tax credit to September 30, 2010.

The bill was previously entangled in a larger jobs bill. Once the tax credit extension was removed from the bill that combined the tax credit with the unemployment benefits extension, the Senate approved the bill as a stand-alone tax credit shortly after the tax credit extension died on the Senate floor.

The Senate passed the bill late Wednesday, June 30, 2010. The bill does not include an extension for people who are currently looking to buy a home … this applies to people who were already in a signed contract by April 30, 2010.

Once President Obama signs the bill … qualified buyers must close the transaction no later than September 30, 2010 in order to receive the $8,000 tax credit. Existing qualified homeowners may receive up to $6,500 if the home buyer closes escrow by Sept. 30, 2010.

Without the tax credit extension, the National Association of Realtors (NAR) estimates that 180,000 home buyers across the nation would have missed out on the tax credit. This includes 17,700 California home buyers.

KD Realty

Certified San Jose Short Sale Specialist

Copyright © 2010, All Rights Reserved by Kathleen Daniels

  *New Life in the Tax Credit Extension – Revival by the Senate – Obama to Sign*

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