Closing Date for the First-Time Homebuyer Credit Extended

N E W S   R E L E A S E
News Release: Immediate

For more information contact:
Phillip Peine
HintonBurdick CPAs & Advisors
435-628-3663

St. George, UT, July 8, 2010 — Good news for those first-time homebuyers and long-time residents who were hoping to claim the First-Time Homebuyer Credit but were unable to close on their homes before June 30, 2010. Congress passed the Homebuyer Assistance and Improvement Act on July 2, 2010, which extended the closing date from June 30 to September 30, 2010.

Keep in mind that the credit has not been extended nor has the time to enter into a written, binding contract been extended; only the time to close on a principal residence has been extended. The extension of the closing date will only apply to those taxpayers who already entered into a written, binding purchase contract before the end of April. Those who entered into a written contact before the end of April, and who meet the other first-time homebuyer or long-time resident requirements, now have until September 30, 2010 to close on their home.

As a reminder, the First-Time Homebuyer Credit will apply to those individuals who have not owned a principal residence in the U.S. during the prior 3 years from the date of purchase of their new home. To claim the full credit, married filing joint taxpayers must have modified adjusted gross income of less than $225,000 ($125,000 if filing single). No credit will be available to married filing joint taxpayers with modified adjusted gross income of more than $245,000 ($145,000 if filing single). Any home purchase for more than $800,000 will not qualify for the credit. The credit is fully refundable and is the lesser of 10% of the purchase price or $8,000.

Long-time residents who make a qualifying principal residence purchase could qualify for a credit of up to $6,500. A long-time resident is defined as one who has lived in the same principal residence for five consecutive years within the previous eight years, ending on the date of purchase of a new principal residence.

Please contact us for assistance on claiming your First-Time Homebuyer Credit. To find the phone number of the office nearest you, as well as for weekly tax tips, visit our website at www.hintonburdick.com.