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Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

The National Association of Realtors has estimated that about 180,000 otherwise eligible buyers were likely to miss out on the credit if the original deadline was upheld. It’s been difficult for some buyers to get their mortgages approved on time, as lenders work through a clogged pipeline of applications.

Buyers purchasing in 2010 will have the option to:

• Claim the credit on their 2009 return, even if the purchase is completed after December 31, 2009;
• File an amended return for 2009 if their purchase is completed after April 15, 2010; or,
• Claim the credit on their 2010 tax returns.

You will need to do three things to claim the credit on your 2009 tax return:

1. Fill out Form 5405 to determine the amount of your available credit;
2. Apply the credit when you file your 2009 tax return or file an amended return;
3. Attach documentation of purchase to your return or amended return.

See:
Applying the Home Buyer Tax Credit to Your 2009 Tax Return

Bridge Loans: Using the Home Buyer Tax Credit Up-Front

Related articles

• Home Tax Credit Extension Relieves Tardy Buyers (abcnews.go.com)

Filed under: Buying, Current Events, Homebuyer Tax Credit, Money-Saving, NAR, Real Estate Market, Tax Issues, VRN