After the Homebuyer Tax Credit: Mortgage Tax Deductions

Are you ready to celebrate the return of the Federal Home Buyer Tax Credit? Unless you're one of the 180,000 Americans with a pending sales agreement in contract by April 30, 2010, a celebration is probably out of order.

While Californians and military personnel can still get state and military tax credits-California's $10,000 state tax credit will last until the end of 2010 and military personnel can get the Federal tax credit if they have a binding sales contract by April 30, 2011 and close by June 30, 2011-the truth is the tax credit is probably over for now. Sure, some debates are still going on: On June 16, the U.S. Senate voted for a three month extension to give people more time to close their homes if they signed a contract by April 30, 2010 and that bill is now in reconciliation. However, while many lobbyists and consumers are working overtime to put the issue in front of Congress before the end of the summer buying season, the sad truth-especially for potential homebuyers and real estate agents-is that the mood in Congress does not currently seem to favor an extension of the tax credit per se.

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