Ask Andy: Home-buyer tax credits EXPIRING - Action News 5 - Memphis, Tennessee

Ask Andy: Home-buyer tax credits EXPIRING

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By Andy Wise - bio | email

MEMPHIS (WMC TV) - So many millions of Americans have claimed either the $8,000 first-time home-buyers tax credit or the $6,500 repeat-buyers credit, the feds have already extended the deadline on both of them once.

There won't be another extension.  At least not as of this writing.

In fact, both tax credits expire THIS FRIDAY, APRIL 30.

You must sign a contract on a qualifying home by April 30, then close on the home by June 30.

Of course, there are income restrictions with both credits, which may be claimed on either your 2009 or 2010 tax returns. The repeat-buyer credit also requires you to own a home that has been your primary residence for five consecutive years during the last eight years.

For the IRS's guidelines on both credits, click on these pages from irs.gov:

http://www.irs.gov/newsroom/article/0,,id=221032,00.html

http://www.irs.gov/newsroom/article/0,,id=204671,00.html

If it's not possible to sign a contract by April 30, shop the lenders. Some are offering their own incentives after the tax credits expire.

For example, Coldwell Banker Real Estate, LLC, will launch its Buyer Bonus Sales Event May 1. The lender will offer a three percent credit of the home's purchase price (up to $8,000) to qualified buyers -- no closing deadlines.

"Coldwell Banker Real Estate is encouraging buyers who haven't found a home yet to continue looking, while bringing a new audience of home-buyers who were unable to qualify for the tax credit into the market," said Jim Gillespie, president/CEO of Coldwell Banker Real Estate LLC.

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