Homebuyers Tax Credit Extension for Qualified Service Members. Veteran’s Day reminded me that the Homebuyer’s Tax Credit, which expired April 30 this year, is still applicable for veterans and qualified service members – allowing them to have an equal opportunity to participate in the program. Congress extended by one year the Home Buyer’s Tax Credit for veterans, active duty military and federal employees who served outside of the United States for at least 90 days during the time-frame of January 1, 2009 – April 30, 2010.
The program provides for up to $8,000 federal tax credit for first-time home buyers and $6,500 for repeat buyers – who occupied their previous home 5 out of 8 years. The extended tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011 – and can be used for FHA, VA or conventional mortgages.
Some of the guidelines are:
Purchase price of home cannot exceed $800,000.
Annual income for married couples filing jointly cannot exceed $245,000; for individuals no more than $145,000.
Qualified military members do not have to repay the tax credit within 36 months of purchase if they have to sell their home or it ceases to be their main residence because of official extended duty.
For the complete requirements see the IRS Instructions for Form 5405.
If someone you know could qualify for this program please tell them about it. Most people are unaware of the extension of the Homebuyer’s Tax Credit for our veterans and active service members. We all owe a huge debt of gratitude to those who serve. They, at least, should not miss out on the benefits that were available to everyone else – while serving our Country overseas.