Neighborhoods and Activities in Baton Rouge

head_left_image

Tax Credit Extended for Military and Certain Other Federal Employees

Tax Credit Extended for Military to April 30, 2011I have received calls asking about the extension of the tax credit.  To clarify here is the 2010 tax credit ruling.

An eligible taxpayer must enter into a binding contract on or before April 30, 2010, to buy a principal residnce and close on the home by June 30, 2010.  There is up to $8000 for first time homebuyers and $6,500 for long-term homeowners who meet qualification.  Details of qualification can be reviewed at IRS.gov

The exception to this ruling is for members of the military and certain other federal employees.  This is to allow those stationed overseas to take the benefit.  Here's what irs.gov site says:

  • Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual's spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.
  • In many cases, the credit repayment (recapture) requirement is waived for members of the uniformed services, members of the Foreign Service and employees of the intelligence community. This relief applies where a home is sold or stops being the taxpayer's principal residence after Dec. 31, 2008, in connection with government orders received by the individual (or the individual's spouse) for qualified official extended duty service. The credit is still allowable even if this happens during the year of purchase. Qualified official extended duty is any period of extended duty while serving at a place of duty at least 50 miles away from the taxpayer's principal residence (whether inside or outside the U.S.) or while residing under government orders in government quarters. Extended duty is defined as any period of duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.

 

Comment balloon 0 commentsAnn Dail • June 08 2010 06:36PM

Comments

Participate