(Another) Possible Tax Credit Extension

The $8,000 first time home buyer credit may again be extended (kinda).  Mortgage companies and their seemingly infinite red tape may prevent nearly 200,000 people from closing by the June 30, 2010 deadline leaving them with a new home, but no tax credit.  

The tax credit is so tempting that 1,300 inmates falsely claimed the tax credit.  Undoubtedly all of those inmates justifiably wanted a nice place to call their own.

The winning case for abusing the first time home buyer credit:  67 people claimed the same house.  That's a crowded house.

Despite the fraud, the Senate has passed a bill that would extend the closing deadline to September 30, 2010.  So, while potential home buyers cannot get in on the action, those of us who signed contract prior to April 30, 2010, but did not close by June 30, 2010 will be able to claim the credit if we close by September 30, 2010.   There is still a chance we can enjoy that tax credit too!

In case you were wondering (you weren't), the tax credit extension will be funded by taking away the tax deduction for businesses paying punitive.