3 ON YOUR SIDE: Deadline nears to get home buyer tax credit - MSNewsNow.com - Jackson, MS

3 ON YOUR SIDE: Deadline nears to get home buyer tax credit

Posted: Updated:

By Marsha Thompson - bio | email

MISSISSIPPI (WLBT) - The deadline to take advantage of $8,000 in first time home buyer credits is 10 days away. Thousands of Mississippians have already jumped on the band wagon, locking in a contract before the April 30th deadline.

It's a silver lining in the worrisome housing market.  More than 20,000 Mississippians have collected over $139,000 in tax credits with this government incentive.

"It's great!" according to Dee Denton, president-elect of the Mississippi Association of Realtors.  The idea is to move houses, and in Mississippi it's working.

Realtors say pending sales are up as a result of the tax credit. 

"It is cash back and is the best way for me to describe it, up to $8,000.00. They need to check in to this opportunity," said Denton.

The IRS says potential home buyers are required to have a binding contract in hand to buy a house by April 30th.  Buyers must close on that home by June 30th to qualify for the deal that will provide up to $8,000 for taxpayers.  It's going away very quickly, so take advantage of it now. 

Repeat home buyers can qualify for $6,500 if they make the deadline.

To claim this credit, repeat home buyers must file a paper return and attach this form, Form 5405.  Additional documents will also be needed to verify the purchase.  Realty experts call this a lucrative deal for those ready to jump in the house market.

An extension is available to those deployed overseas in the military.  Service men and women have an extra year to buy a principal residence in the U.S. and still qualify for the credit.

Experts caution that it will take months to know for sure that the housing market has recovered.  Some say the biggest threat remains foreclosures.

©2010 WLBT. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Powered by WorldNow