Senate leader Reid seeking for move up and 1st time homebuyer tax extension
Senate Majority Leader Harry Reid yesterday Thursday proposed to giving extra time to homebuyers trying to get a popular federal tax credit by the end of June
Reid trying to extend the closing deadline to September 30 for buyers who met the April 30 deadline to have a signed contract. The current deadline requires those buyers to close the transaction by June 30 to receive the $8,000 tax credit for first-time homebuyers.
The Nevada Democrat plans to attach the amendment to a separate effort to extend some business tax breaks and extend insurance benefits to unemployed workers.
The proposal would not have a significant impact on future home sales as the extension would only be for home buyers who already had a contract in hand by April 30.
The popularity of the tax credit has caused some home buyers anxiety because settlement offices are slammed with buyers trying to close on transactions by the end of this month in order to receive the funds.
Congress extended the $8,000 tax credit for first time homebuyers last fall and added a $6,500 tax credit for all buyers who were purchasing a primary residence.
Consideration is still not clear. Hopefully this will pass so these people will not be penalized because they couldn't close in time due to backups with CO issues, refinances etc.
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