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President Barack Obama signed the Homebuyer Assistance and Improvement Act of 2010 (HR 5623) on July 2. The bill extends the closing date deadline to qualify for the first-time homebuyer credit from June 30, 2010, to Sept. 30, 2010.
IRS Code Section 36 allows a tax credit of up to $8,000 for first-time homebuyers and a credit of up to $6,500 for long-term residents of the same principle residence. However, the credits are temporary, and the credit was only available to qualifying homebuyers who bought a principal residence on or after April 9, 2008, and on or before April 30, 2010, or who entered into a written binding contract on or before April 30, 2010, to close on the purchase of a principal residence on or before June 30, 2010. Because of delays due to a number of reasons largely outside of their control, many qualifying homebuyers who entered into binding contracts on or before April 30 were unable to close on their residences by the original June 30 deadline.
On the IRS website you can find the list special filing and documentation requirements that apply to anyone claiming the homebuyer credit. The news release provides a list of these requirements. Expect delays in processing tax returns from the IRS with this credit.