Government reminds homebuyers of expiring tax credit

The U.S. government is reminding taxpayers that they still have just under a month left if they are interested in taking advantage of the popular credit for homebuyers.

As April got underway, the U.S. Treasury Department issued an announcement noting that homeowners still have 30 days to benefit from the tax credit. The credit had been initially set to expire at the end of November, but was extended by Congress as a way to provide additional stimulus for the economy.

Under the credit, homebuyers must have a property under contract by May 1, 2010 and the home must be closed on before July 1, 2010.

"The First Time Homebuyer credit has helped nearly two million families achieve the American dream of owning their own home. The expanded tax credit has been one of the great successes of the Recovery Act. Potential homeowners across the country should know about it and should take advantage of it," said Deputy Treasury Secretary Neal S. Wolin.

The provision, which was approved under the federal stimulus act, provides an $8,000 credit for first-time home purchases, or $6,500 for those who are long-time residents of their home but choose to buy a new one.

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Posted To: Tax Ranger's Blog By: Tax Ranger On: Wednesday, April 07, 2010
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