Tax Preps: First-Time Homebuyers Credit About To End

April 15th may be thursday, but another tax deadline is also around the corner.

The first-time homebuyer credit runs out at the end of this month.

April 30th is the deadline to qualify, but if you have entered into a binding contract by then you can still receive the credit if you close on your house by the end of June.

The first-time homebuyer credit was meant to spur the slumping housing market, and has been a popular program since it first kicked off in 2008.

It was even extended and expanded last fall.

“The incentive has been there for a lot of taxpayers here in California,” according to Raphael Tulino. “It’s more the 100,000 taxpayers who have taken advantage of the ’09, and 2008 credits, because they’ve been around for 2 1/2 years now, to the tune of a billion dollars worth of credits going back to taxpayers by taking advantage of buying a home here.”

To qualify for the first-time homebuyer credit of $8,000, among other things, you must not have owned a home in the last 3 years, and the house you move into must become your primary residence.

When the credit was expanded last fall, they also added the $6,500 long time resident credit, which also expires at the end of the month.

It’s for people who have lived in their primary home 5 consecutive years out of the last 8, and the home they’re buying has to be their new primary house.

Be sure to visit KESQ.com’s Tax Section for more help and resources.