The Home Buyer Tax Credit is available for United States troops who get into a contract by April 30, 2011 and close by June 30, 2011. The tax credit is available for veterans who served outside of the U.S. for at least 90 days between Jan. 1, 2009 and May, 1 2010.
First-time home buyers are eligible to receive up to $8,000 and repeat buyers can receive up to $6,500 for a new home.
“This is a great incentive and sign of appreciation for our troops who serve our country,” said John P. Horning, Executive Vice President of Shorewest, Realtors®.
Federal Government employees who served overseas also qualify for the tax credit until April 30, 2011.
Key points for members of the Military, the Foreign Service and Intelligence Community, according to the Federal Housing Tax Credit website are:
Exemption From Tax Credit Recapture Rules
- Typically, homes that are sold or that cease to be used as a principal residence within three years of the initial purchase are subject to recapture of the tax credit.
- However, qualified service members who sell or move from a tax credit home within three years of the initial purchase due to official extended duty are exempt from the recapture rule.
Extension of Tax Credit Deadlines
- The home buyer tax credit is available for qualified purchases with a binding sales contract in place on or before April 30, 2010 and closed by June 30, 2010.
- However, for qualified service members who are ordered on a period of official extended duty, these dates are extended for one year. For these home buyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011.
- A person who is forced to return to the U.S. for medical reasons before completing an assignment of at least 90 days of qualified official extended duty outside of the United States may qualify for the one-year extension.
Visit the Home Buyer Tax Credit website to check out more information.
Categories: Real Estate News