Senate Approves Extension of June 30th Tax Credit Deadline

• June 16, 2010
• 3 Comments

by Mark Wellborn

The Senate has approved a proposal that would extend the June 30th deadline by which buyers who took advantage of the $8K federal tax credit have to complete their home-buying transaction. The measure would extend the closing deadline to September 30th.

The real estate lobby is likely happy with this development. According to the National Association of Realtors, a good chunk of home buyers who took advantage of the credit bought homes that were either short sales or in foreclosure. As UT readers know, these transactions often take longer to close than the normal home-buying process. As such, many buyers are in danger of not meeting the June 30th deadline.

The measure is part of a larger tax-related bill that will likely be voted on later this week in the Senate, then would go to the House.

This article originally published at http://dc.urbanturf.com/articles/blog/senate_approves_extension_of_june_30th_tax_credit_deadline/2176

3 Comments

1. JT said at 10:17 am on Thursday June 17, 2010:

   I think this had to be done.  If a large % of 1st time deals came undone, this whole thing would have been a complete cluster F.  I don’t understand why they can’t phase some of these incentive programs though.  The idea is to get people to act sooner than later right?  Postponing the original deadline from November to April just gave people time to delay.  I think we should have done something like a $12,000 credit if you closed in January, 2010.  Then $11,000 if close in February, $10,000 if you closed in March, etc.  The IRS can play with the numbers and dates, but this sort of concept seems like it would be easier for the market to digest and would have a more legit finality to the program.

1. jd said at 10:34 am on Thursday June 17, 2010:

   Or…crazy thought here.  We could let a “free market” be, well you know..FREE!  The idea that artificially inflating the prices of home by 8k for first time home buyers is in anyway helping, while leaving the burden on the rest of the taxpaying country is unbelievable.  Glad I get to bear the burden of everyone else looking to save a few bucks, when in reality all it does is allow the sellers to make more money then the market commands.  This program doesn’t help buyers in any way, and if you don’t see that you need an econ 101 course immediately.

1. Sawsdad said at 10:42 am on Thursday June 17, 2010:

   When will we know for sure? the article says, “The measure is part of a larger tax-related bill that will likely be voted on later this week in the Senate, then would go to the House.”

   Is the house likely to approve it?

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