LoanCentral's Real Estate Lending Blog

The TAX CREDIT offered by our Federal Government for purchasing a home had 2 expiration dates – The first was April 30^th which was the deadline for writing the purchase and sale agreement. This has passed, if you missed it – you missed out on a $6,000 to $8,000 tax credit – dollar for dollar credit against Federal tax owed to the IRS. (Cash back if you didn’t owe that much in taxes)

The second and upcoming deadline was June 30^th where the home you purchased [prior to April 30^th] must be closed. If you are currently involved in a transaction that is subject to the Tax Credit deadline of June 30th you may be aware that Congress is CONSIDERING extending that date. "A proposal in the Senate to extend the closing date for the credit passed by a vote of 60-37 around 3pm (on 6.16.10), sometime after this was originally posted. It is important to realize that this is not final.

This proposal is going to be attached to a revised Tax Extenders Bill, which will have to be passed by the Senate in order for the extension of the closing date to become law. As of this time, that has not yet happened."
My recommendation at this point is to move forward with the existing June 30th deadline for the tax credit. The IRS and Federal Government rarely gives flexibility on timeframes such as this.