Tax Docket

On Wednesday, the Senate approved legislation which allows home buyers (first-time home buyers and home buyers purchasing home for primary residence) that signed contracts by April 30 to close by September 30 in order to still be eligible for the tax credit. The tax credit is $8,000 for first time home buyers and $6,500 for home buyers purchasing a home as their new primary residence. Congress has sent the bill to President Obama.

Reuters, Senate Agrees to Extend Home Tax Credit

New York Times, Home Buyers’ Tax Credit Extended

ABC News,Congress Approves Home Tax Credit Extension

As part of an update on the Senate’s vote on an amended spending bill which includes the first time home-buyer credit closing date extension, the Wall Street Journal has reported that the extension passed in the Senate by an amendment 60-37:

Despite budget concerns, senators later approved an amendment 60-37 that would extend the time individuals have to qualify for a popular tax credit supporting home purchases. The credit is due to expire June 30. Under the amendment, pushed by Senate Majority Leader Harry Reid (D., Nev.), buyers would still have had to enter into purchase contracts by April 30 to qualify for the tax credit. But they would now be given until Sept. 30 to close the purchase.

Update: Senate Approved the Bill on June 30. See Home Sweet Home Tax Credit: Senate Agrees to Extend Closing Deadline to Sept. 30.

From the Wall Street Journal’s article, Congress Could Extend Home-Buyer Tax Credit Closing Deadline

On Thursday, there were signs that the real-estate lobby had successfully communicated those concerns to Congress.  Senate Majority Leader Harry Reid (D., Nev.) joined Sen. Christopher Dodd (D., Conn.) and Sen. Johnny Isakson (R., Ga.) in sponsoring a measure that would give buyers until Sept. 30 to close on sales that went into contract by April 30. That measure would be attached to a job-related bill before the Senate. It would need House and Senate passage before being signed by President Obama.

Congress last fall extended an $8,000 tax credit for first-time home buyers and added a smaller $6,500 credit for current homeowners. For now, buyers who signed contracts by April 30 have until June 30 to close on those sales in order to claim the tax credit.