First-time homebuyer credit’s final week: Close by Sept. 30 to claim it

September 23, 2010

Did you have contract on a house in place on April 30?

Do you meet the requirements to qualify for the expanded first-time homebuyer tax credit?

If so and you haven't closed on your new home yet, get to prodding, pleading and generally nagging whoever it takes to get the paperwork signed, sealed and delivered by next Thursday.

A week from today, Sept. 30, is when the homebuyer tax credit finally ends.

A sold sign outside a home recently for sale is seen in Arlington, Virginia on July 23, 2009. The Dow Jones industrial marked its first close above 9,000 since January after news that existing home sales rose in June for the third straight month. (UPI Photo/Alexis C. Glenn) Photo via Newscom

As we wind up this ostensibly well-intended tax credit, data is coming in that indicates that for the most part the tax break has had a negligible effect.

In Life After the Home Buyer Tax Credit for yesterday's Economix blog, Casey B. Mulligan says:

"For now, it appears that, aside from this spring's rush to meet the tax-credit deadline, the housing market after the tax credit will proceed at much the same pace it did for the time that the credit was in place."

And today, we learn that existing home sales bounced back in August.

Yes, some of those sales, which the National Association of Realtors report bases on actual property closings, probably were by folks taking advantage of the first-time homebuyer credit's extension until Sept. 30.

But not all of them.

What we must wait and hope for is the housing sector to find its natural footing now that it's not artificially propped up by the homebuyer tax credit. That seems to be happening.

"Home values have shown stabilizing trends over the past year, even as the
economy shed millions of jobs, because of the home buyer tax credit stimulus,"
said Lawrence Yun, chief economist for the National Association of Realtors.
"Now that the economy is adding some jobs, the housing market needs to
steadily improve and eventually stand on its own."

Related posts:

Want to tell your friends about
this blog post? Click the Tweet This or
Digg
This
buttons below or use the Share This
icon to spread the word via e-mail,
Facebook and other popular applications. Thanks
!

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
6 tax moves to consider this June

June 3, 2026

Definitely take a break this June. But taxes don’t take vacations. So, you also should…

Read More
Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • Do you really need more than five months to close on a house?

    Kay Bell reminds us that the last deadline for eligibility for the first-time homebuyer credit looms. If you had a…

Comments are closed.