Military Personnel Have An Extension Of Federal Tax Credits!
Thursday, May 06, 2010
The good ol’ U.S.of A. tries to take care of its brave soldiers, a tradition that Congress has now continued in little-known sections of the recently expired home buyer tax credit legislation.
Under the Worker, Homeownership, and Business Assistance Act, which was signed into law in November 2009, a little known or talked about clause was added that allows military personnel and certain other federal employees serving outside the country to have an extra year to qualify for the $8,000 tax credit offered to first-time buyers and the $6,500 credit available to repeat buyers.
So, servicemen and women get an extra 12 months to sign a binding Agreement, (by April 30, 2011), and close no more than 90 days later!
The rule applies to individuals or their spouses who serve on qualified official extended-duty service outside the country for at least 90 days between January 1, 2009, and April 30, 2010. According to the IRS, only one spouse needs to be overseas on official extended duty for the requisite time to qualify.
Also… while for most buyers who went Under Contract by April 30, 2010, and if the home is sold or otherwise ceases to be used as a principal residence within three years of the initial purchase, the credit must be repaid, for an eligible member of the armed services, intelligence community or Foreign Service, that provision is waived if the house is sold in connection with orders sending the taxpayer to a new duty station at least 50 miles away. The new post can be either inside or outside the U.S., but the change must occur because the taxpayer is under orders to move for a period in excess of 90 days or indefinitely.
Members of the military also may be eligible for help if they are forced to sell their homes for less than what they owe on their mortgages because of a mandatory, permanent duty transfer!
Posted in: Intown Atlanta Real Estate News