Fthb Extension

[taxea]

http://www.webcpa.com

Harry Reid
BY WEBCPA STAFF
Back
Senate Passes Homebuyer Credit Extension
WASHINGTON, D.C. (JUNE 17, 2010)
The Senate has approved an amendment to extend the closing deadline for homebuyers who qualified for the First-Time Homebuyer Tax Credit.
The amendment, sponsored by Senate majority leader Harry Reid, D-Nev., would extend the transaction closing date from June 30 to Sept. 30, 2010.
Buyers must still have signed a sales contract by April 30 in order to qualify for the credit.
“The First-Time Homebuyer Tax Credit was an extremely popular and successful program that has helped Americans purchase homes and given a boost
to our economy,” said Reid in a statement. “Because of this program’s popularity and the time it takes to complete transactions such as short sales, I led
the effort today to extend the closing deadline for this tax credit through September of this year — allowing lenders more time to clear a backlog of 180,000
potential homebuyers nationwide.”
The amendment passed by a 60-37 vote. It was co-sponsored by Sen. Johnny Isaakson, R-Ga., and Senate Banking Committee Chairman Christopher
Dodd, D-Conn. The amendment was added to the American Jobs and Closing Tax Loopholes Act.

[jimmcg]

http://www.webcpa.com
Harry Reid
BY WEBCPA STAFF
Back
Senate Passes Homebuyer Credit Extension
WASHINGTON, D.C. (JUNE 17, 2010)
The Senate has approved an amendment to extend the closing deadline for homebuyers who qualified for the First-Time Homebuyer Tax Credit.
The amendment, sponsored by Senate majority leader Harry Reid, D-Nev., would extend the transaction closing date from June 30 to Sept. 30, 2010.
Buyers must still have signed a sales contract by April 30 in order to qualify for the credit.
“The First-Time Homebuyer Tax Credit was an extremely popular and successful program that has helped Americans purchase homes and given a boost
to our economy,” said Reid in a statement. “Because of this program’s popularity and the time it takes to complete transactions such as short sales, I led
the effort today to extend the closing deadline for this tax credit through September of this year — allowing lenders more time to clear a backlog of 180,000
potential homebuyers nationwide.”
The amendment passed by a 60-37 vote. It was co-sponsored by Sen. Johnny Isaakson, R-Ga., and Senate Banking Committee Chairman Christopher
Dodd, D-Conn. The amendment was added to the American Jobs and Closing Tax Loopholes Act.

The amendment was approved about a week ago. It is now part of HR4312 which the Senate has not been able to gather sufficient votes to get to the floor for vote. HR4312 is presently dead in the water but the lobbyist's are attempting life support for it....... There is also talk of adding it to another bill that has a better chance of passage.........The lobbyists' are working on it.

[Bees Knees]

What's the point? The stimulus to get someone to buy a house was the April 30th deadline, which is not changning under the new law. How does this extension encourage anyone to go out and buy a new house who hasn't already done so?

[JohnH]

It might prevent some deals from falling through. I know of situations which were under contract by Apr 30 but for varIous reasons have been delayed in closing. Some of them will not close if the credit is off the table, and right now the contracts call for timely closing with time being of the essence.

[jimmcg]

What's the point? The stimulus to get someone to buy a house was the April 30th deadline, which is not changning under the new law. How does this extension encourage anyone to go out and buy a new house who hasn't already done so?

The point of the amendment is to allow more time to close deals which are already under contract. The banks and title companies say they do not have time to finish the current backlog........the intent was never to encourage new purchases.

[jimmcg]

Bill Passed

Seperate bill for homebuyers tax credit three month extension of closing date has now passed both houses of Congress. Fearless Leader expected to sgn bill shortly.

[dyne]

This is just going to cause more confusion. On page 1 of the local paper it says:
Blind man arrested in fatal shooting.

[JohnH]

Maybe his seeing-eye dog showed him where to aim.
Would that make the dog an accomplice?

[dyne]

It was reported in this morning's newspaper that Obama signed into law the extension of the
FTHB credit.The report of the blind man being arrested for murder turned out to be that
he shot and killed a man and then he was in turn shot in the head which caused him to become blind.

[OtisMozzetti]

I am not sure how to relate this with blind men and their dogs, but at any rate...

A large reason for delays in closing large numbers of sales that had signed contracts in effect by April 30 is that they were "short sales" where the acquiescence of some obscure lender who purchased one of the mortgage loans had to be obtained. An IRS information e-mail said that, in order to avoid delays in payment of the credit, the initial return (amended or originally filed) which claims the FTHB credit should include a copy of (much of) the signed contract which became binding no later than April 30.

[taxea]

the homebuyer credit has been signed by Obama...IRS has put out the info and are accepting the extension.
What is being held up is the extension of the unemployment benefits.