Tax Credits Expire on April 30 (No Extension)

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Many will miss the Federal Tax Credits because they believe they will be extended again!

As of today Congress has made no mention of proposing another extension of these homebuyer tax credits. In fact, many decision makers in Washington believe that the tax credits have been available long enough to produce the maximum results possible. They also feel it’s time to redirect these tax dollars toward other programs that could stimulate the economy and help with unemployment. Many of the current tax credit bills involve offering tax incentive dollars for the creation of new jobs.

The Homebuyer’s Tax Credits are due to expire on April 30, 2010.  If you haves friends, family members, neighbors or colleagues who are not aware of these tax credits, this could be their last chance to take advantage of this unique opportunity.

Yes there is still time to get a home under contract by the April 30, 2010 deadline and then close on it by June 30, 2010.

Anyone who is currently renting needs to take a serious look at why they should continue to rent when they could home a home for the same monthly amount and have money left in their pocket after closing due to the $8,000 tax credit!

It’s hard to believe how casual folks are about $8,000 that the Federal Government is offering them that they do not have to repay! It’s as if $8,000 is not a big deal.

Well, according to Career Builder Inc., there are 68 professions that pay an average of $30,000 to $34,000 per year. Some of the professions included: Life Support Technician; Shipping Clerk; Fire Fighter First Responder; Auto Salvage Worker; Bus Driver; Construction Worker; Court Clerk; Physical Therapy Aide; IT Technician; Grocery Store Department Manager; School Secretary; Medical Receptionist; Veterinary Technician….

$8,000 is a big deal! For people who work in the above professions, they have to work about 3 months to earn $8,000!

Don’t let this opportunity slip away. Make sure all the people in your life know that they still have time to take advantage of the only homebuyer tax credits ever offered.

Here are the details of both tax credits:

$8,000 First Time Homebuyer Tax Credit

  • Extended until April 30, 2010 on Nov. 7, 2009
  • First Time Homebuyers (eligible if you have not owned a home in 3 years)

$6,500 Move up Homebuyer Tax Credit

  • Created Nov. 7, 2009. Good until April 30, 2010
  • Homebuyers who either own or have owned a home that they lived in as their Primary Residence for 5 consecutive years of the last 8 years.

$8,000 or $6,500

  • The following guidelines are for both Tax Credits:
  • Final Sales Contract dated between 11-7-09 & 4-30-10
  • Closing between  November 7, 2009 and June 30, 2010
  • Individual buyers – Income of no more than $125,000
  • Buyers filing jointly – Income of no more than $225,000
  • Max. credit amount or 10% of the Sales Price of Home
  • U.S. citizens who file taxes with the IRS
  • The home can not be acquired from a related person

Post a comment if you have either received the tax credit or you know someone who has received it (or will in the future).

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6 Responses to “Tax Credits Expire on April 30 (No Extension)”

  1. Simah Benyamin Says:

    All of my Buyers have either received or applied for the tax credit. They are very happy and have many plans on how to spend this “FREE” money. I am ready for April 30, 2010 to come and go presenting new opportunies and new buyers. I’m up for the NEW challenge!

    • Judy Jones Says:

      I love your attitude Simah! It sounds like you have done an excellent job of informing your sphere of influence about the tax credit opportunity and that many of them have taken advantage of it.

      We will keep everyone informed of the “next” new opportunities. Even if nothing changes, the fact that mortgage interest rates are at historic lows and there is a great supply of homes at incredible values, makes this a wonderful time for folks to achieve the Dream of Home Ownership!

  2. Pat Viohl Says:

    I have to say I have been surprised at the number of buyers who have waited until the last minute! Since it often is NOT smooth sailing through the pre-approval process, waiting until April to begin thinking about this seriously jeopardizes the buyer’s chances of successfully getting under contract by 4/30. Add to that the fact that it may take a few outings to find a home…. and then you may not be the buyer who puts in that successful offer – all kinds of things can delay the process, here in the 11th hour.

    • Judy Jones Says:

      Pat,
      I totally agree. I think waiting until the last minute is just part of some peoples’ nature. I fear that those buyers who have waited did not fully understand the homebuying and mortgage process of today. You said it perfectly, “all kinds of things can delay the process, here in the 11th hour.”

  3. Sandi Rodrick Says:

    The race is on and there can be multiple winners! As long as buyers place themselves at the gate (binding agreement) by11:59pm 4/30/10 and show up at the finish line (closing table) by 11:59pm 6/30/10, they are cash winners. I’ve spoken with a couple tax preparers that have already amended buyers’ filings of this year’s tax returns for the tax credit. It takes more time than paperwork. Win, place and show- it doesn’t get any better than that at any race track! I’ve seen the race entries lining up recently but there’s still al ot more room for more racres! The losers are those who are in the market for a home but aren’t folowing their programs to get into the race!

  4. Deborah Gaither Realtor Delivering On The Promise Says:

    Procrastination and the lack of knowledge regarding the homebuying process have caused a number of homebuyers to miss this fantastic opportunity.
    Judy, I agree that some feel that there will be another extension or some other program replacing the tax credit in place now.
    The inventory in Atlanta and the surrounding areas now consist largely of foreclosures and short sale properties; and there is no hurry with the bank to get the paperwork back in a timely manner.
    If the $8,000 for first time homebuyers was not enough motivation, I am curious to see what else could get you moving.
    Perhaps more money?

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