Homebuyer Credit Closing Deadline Extended to September 30, 2010

The deadline for the completion of qualifying First-Time Homebuyer and Long-Term Homeowner Credit purchases has been extended. Taxpayers who entered into a binding contract before the end of April now have until September 30, 2010 to close on the home.

Note- This extension ONLY extends the time by which taxpayers who had entered into a binding contract before May 1, 2010 can actually complete the purchase (close escrow). It does not extend the “before May 1” contract date requirement.

The Homebuyer Assistance and Improvement Act of 2010, enacted on July 2, 2010, extended the closing deadline from June 30 to Sept. 30, 2010 for eligible homebuyers who entered into a binding purchase contract on or before April 30.

To claim the credit, complete Form 5405 and attach it to the homebuyer’s return, along with a copy of the settlement statement showing all parties’ names (and signatures if required by local law), property address, sales price, and date of purchase (escrow closing date). In addition, to avoid refund delays, for those who entered into a purchase contract on or before April 30, 2010 but closed after that date, the IRS recommends also attaching a copy of the pages from the signed contract showing the names of all parties (and their signatures if required by local law), the property’s address, the purchase price and the date of the contract.