Military Gets Extension on First Time Home Buyer Tax Credit
While the deadlines for both the $8000 first time home buyer tax credit and the $6500 repeat home buyer tax credit have passed us by, military service members on extended duty outside of the US for 90 days or more between January 2, 2009 and May 1, 2010 may be able to qualify for a one year extension. Due to the special circumstances of military service members, there are also some changes in the rules surrounding the tax credits that deal with their unique situation.
The original rules stipulated that a homeowner who received a tax credit on their home purchase had to use that home as their primary residence for three years or else they would be required to pay back the tax credit. The new military extension states that, if a service member has to sell or move from their primary residence purchased under the tax credit guidelines within 3 years of purchase due to official extended military duty, they will be exempt from having to pay back the credit.
Also, originally, the tax credit was only available to home purchases with a binding contract in place on or before April 30, 2010 and closed before June 30, 2010. Under the new military extension, those service members who qualify for the tax credit and were out of the country on official extended leave will have to have a binding contract in place on or before April 30, 2011 and have their sale closed by June 30, 2011. This also includes service members who are forced to return to the US due to medical reasons before their assignment of at least 90 days extended duty is completed.
To be considered a "qualified service member", you must be a uniformed member of the US military, Foreign Service of the US or an American intelligence community employee. An "official extended duty" is considered to be any extended duty outside the US for a duration of at least 90 days between December 31, 2008 and May 1, 2010.
If you want more information or help with understanding the extension of these tax credits for military service members and how they affect you, please contact The Silveria Team.
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