Will the Federal Tax Credit Be Extended for Orange County Buyers in Escrow?
The $8,000 Federal Tax Credit for First Time Buyers is set to expire June 30, 2010. Originally, a first time buyer had to be in escrow by April 30 and close by June 30 to potentially qualify for the tax credit.
However, it is estimated that many of these buyers will not close escrow by the current deadline. Many of these are short sales, which can take months to close, and many buyers are still waiting for short sale approval while the deadline looms.
Additionally, with so many first time buyers trying to close this month, the lenders are back logged trying to get their new home loans closed.
So, if you were in escrow by April 30 and have been concerned that you might not close on time, try to close by June 30 so that you can be certain of getting your $8,000 if you qualify. However, if you can’t close for whateve reason, stay tuned, the Federal government may extend this and you may still get your credit.
If you missed the Federal tax credit, but are still hoping for a tax credit, you may qualify for the California First Time Buyer Tax Credit.
If you would like more information about buying your first home, please contact Christine Donovan at 714.319.9751.
I am not an accountant nor do I have any training in tax preparation or tax credit, and this is not intended to be advice regarding taxes or the tax credit. Please contact the IRS or a qualified tax professional for advice.