More Time for Tax-Credit Deals?

Slow-moving short sales have made it impossible for many buyers to meet the June 30 closing deadline to qualify for the government tax credit.

So it was a relief when a bill was introduced in the Senate in June to extend the closing deadline to Sept. 30 for contracts that were already in place.

As many as 180,000 households could benefit if the bill passes, NAR estimates.

Meanwhile, members of the military, intelligence agencies, and the Foreign Service who spent at least 90 days overseas last year have until the end of April 2011 to get a contract in writing in order to qualify for the tax credit.

Source: www.REALTOR.org/realtormag

Tax Credit Closing Deadline Extended

After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension the new closing deadline for eligible transactions is now September 30, 2010. There is will be no gap between June 30 and the date the President signs the bill into law. NAR worked closely with Congressional leaders on both sides of the aisle to enact this important legislation.

Tax Credit extended for Military Families

Military service is a tough job, but it comes with privileges at tax time.
By Kimberly Lankford, Kiplinger.com

Service members get a tax-free housing allowance, can qualify for tax-free pay while serving in a combat zone and have an extended tax-filing deadline while deployed -- giving them up to 180 days after returning from a combat zone to file their tax return.
They can also stockpile extra money for retirement in tax-deferred accounts. Not only can military personnel stash up to $16,500 in the federal Thrift Savings Plan in 2010, but they can also contribute all of their tax-exempt combat-zone pay (as long as total TSP contributions for the year don't exceed $49,000). Tax-exempt pay that goes into the TSP comes out tax-free in retirement. At the same time, they can contribute up to $5,000 to an IRA ($6,000 if 50 or older), even if their entire yearly income is tax-exempt combat pay.
Homeowner breaks. And now service members serving outside the U.S. for at least 90 days between December 31, 2008, and May 1, 2010, have an extra year to qualify for the $8,000 first-time home-buyer credit or the $6,500 credit for current homeowners. They have until April 30, 2011, to sign a contract and until June 30, 2011, to close on the new house. Normally, if homeowners don't live in the new house for at least three years, they have to repay the tax credit. But there's an exception for members of the military who have to relocate because of government orders.
Military families also get a special break when they sell their homes. Most homeowners need to live in a house for at least two of the five years leading up to the sale in order to claim tax-free profits of up to $250,000 ($500,000 if married filing jointly). But because they move frequently, military families need to live in the house for only two of the preceding ten years in order to qualify if they are on qualified official extended duty, which means living at least 50 miles from home or in government quarters.
For more details, see Kiplinger's Money Guide for Military Families at Military Families. Or see IRS Publication 3, Armed Forces Tax Guide.
Reprinted with permission. All Contents © 2010 The Kiplinger Washington Editors. www.kiplinger.com

Tax Credit Extended for Certain Individuals

This is good info to know for military families and certain government employees should their service take them outside the US for at least 90 days during a defined period of time:

http://www.irs.gov/newsroom/article/0,,id=215594,00.html

50 days and Counting...

The countdown is on! The clock continues to wind down the final days of the tax credits. 50 days is how long a buyer needs to be under contract by. Can you believe that April 30 is only 50 days away?

New inventory is coming on the market daily and the activity is plentiful! Interest rates are still low. Sellers want to sell and buyers want to buy - what a win-win!

Next week is Liberty school district's Spring Break. We anticipate a lot of activity! Get your runnin' shoes on!

71 Days and Counting...

... that is all the time that Buyers have to be under contract to obtain the tax incentive. Whether you are a First Time Home Buyer and looking at the $8000 tax credit, or the Repeat Buyer and looking at the $6500 tax credit, the clock is ticking. For more information on these 2 credits, please visit http://www.federalhousingtaxcredit.com This will address any questions you may have.

What an opportunity!