H.R. 5623 and tax credit extensionH.R. 5623 is a bill which the Congress has come up with extend the Home buyer tax credit by further 90 days (till 01 October 2010) and consequently stop the further deterioration of the housing market in United States. For details of the bill visit Tax credit extension - October 2010. This bill has indeed been passed by the house - read US House backs 2010 tax credit extension. It has to be still passed by the senate. However, it is expected to be passed by the Senate today.
H.R. 5623: Homebuyer Assistance and Improvement Act - Legislative Digest - GOP.gov
H.R. 5623 would extend the home-buyer tax credit of up to $8,000 for the purchase of a principal residence before October 1, 2010. The current benefits apply to cover buyers who enter into contracts before April 30 and close by June 30. This bill would extend the closing date to September 30, 2010.
The bill would provide any home-buyer who entered into a contract on a home by April 30, 2010, but have been unable to go to closing within the required 60 days; the provision would extend the closing date for an additional 90 days. This provision is estimated to cost $140 million.
For knowing more about the Home buyer tax credit, read my detailed post on Tax credit and its extension.
Federal Tax Breaks, IRS Tax Credits, Tax Rebates in 2009 Economic Stimulus Package that maybe of interest to you
FAQ: Can you claim your $8000 first time home buyer tax credit in 2008 tax return itself or do you have to wait till you file 2009 tax return? The law allows any qualified purchases made in 2009 to be treated as if the purchase was made on December 31 2008. You can claim the $8000 first time home buyer tax credit in 2008 tax return itself by filing form 5405 according to the latest IRS ruling. Thus you can get the benefit of $8000 in 2008 tax return itself.
Income Tax tip for first time home-buyers: If you know you qualify for the $8000 home buyer credit there is no need to wait to file your 2009 tax return in order to get benefit of this housing stimulus. First time home buyers are actually permitted to reduce their income tax withholding by the amount equal to housing credit, i.e. $8000. You can then use this 'extra cash' got by increase in your take home pay for down-payment.
Quick Answers to common queries: