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Currently to claim a tax credit of up to $8,000 (or up to $6,500 for non-first time home buyers), home buyers must have purchase contracts accepted by April 30, 2010, and must close escrow by June 30, 2010.

Friday, June 11, Senators Harry Reid of Nevada, Johnny Isaakson of Georgia, and Chris Dodd of Connecticut introduced an amendment to the American Jobs and Closing Tax Loopholes Act of 2010 (H.R.4213) that, if passed, would extend that closing deadline to September 30, 2010.

This amendment would not extend the required April 30 deadline necessary to claim the tax credit. If passed, though, the amendment would extend the date required to close the transaction until September 30, 2010.  

The National Association of REALTORS® has reported that as many as one-third of qualified applicants have been notified by lenders that their mortgages will not close before June 30 due to the sheer volume of applications in the pipeline.  The Senate amendment would allow home buyers adequate time to complete their purchases in time to claim the credit.

For more information regarding the status of this amendment or to locate real estate in the Greenville, NC and Pitt County area, please contact The Pistol Tingen Team at (252) 321-6161.

How to Get the Extended Home Buyer Tax Credit

by Madeleine Tingen

You’ve decided to purchase a home and take advantage of the Extended Home Buyer Tax Credit.  Below are the steps to follow to get your benefit.

Close on your home purchase between November 7, 2009 and April 30, 2010, or have a binding written contract in place by April 30, 2010 with a closing date no later than June 30, 2010.

Decide whether to:  apply the credit to your 2009 tax return, filed on or before April 15, 2010; file an amended 2009 return; or, apply the credit on your 2010 return, filed on or before April 15, 2011.

Attach documentation of purchase to your return.

 Documentation of Purchase

Details concerning the precise documents required to confirm your purchase have not yet been released. When this information becomes available, it will be made available online.

When to Apply the Credit

Buyers purchasing homes on or before December 31, 2009 may claim the credit on their 2009 tax returns.

Buyers purchasing in 2010 will have the option to claim the credit on their 2009 return, even if the purchase is completed after April 15, 2010; or, claim the credit on their 2010 tax returns.

 Applying the Credit to Your 2009 Taxes

 You will need to do the following three things to claim the credit on your 2009 tax return-- fill out Form 5405 to determine the amount of your available credit, apply the credit when you file your 2009 tax return or file an amended return and attach documentation of purchase to your return or amended return.

For more information or questions regarding the Extended Home Buyer Tax Credit or, please contact a member of the Pistol Tingen Team.  The Pistol Tingen Team specializes in servicing real estate needs within Greenville, NC and the Pitt County area.

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