Senate members introduce amendment to extend first-time homebuyer tax credit closing deadline

Sens. Harry Reid (D-NV), Johnny Isaakson (R-GA) and Chris Dodd (D-CT) have introduced an amendment to the American Jobs and Closing Tax Loopholes Act of 2010 that would extend the deadline for closing home purchases in order to qualify for the first-time homebuyer tax credit. The current deadline for purchases made using the popular tax credit is June 30, 2010. There is growing concern that because of the time it takes for banks to complete transactions such as short sales, many of these home purchases would not be complete before the deadline through no fault of the homebuyer. The Reid, Isaakson and Dodd amendment would extend the deadline to Sept. 30, 2010, to ensure the completion of the sales. “The first-time homebuyer tax credit was very popular and successful in Nevada,” Sen. Reid said. “In addition to making it easier for thousands of Nevadans to purchase their first home, it helped reduce the sitting inventory of homes. By extending the transaction deadline, we can ensure that everyone taking advantage of this credit can complete the purchase of their new home.”