Special Rules for Members of the Military, the Foreign Service and
the Intelligence Community
Congress has acknowledged
the unique circumstances affecting members of the military, the
foreign service and the intelligence community by making the
following exceptions that apply to both the $8,000 tax credit for
first-time home buyers and the $6,500 tax credit for repeat home
buyers.
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.
Definitions
·
“Qualified service member” means a member of the
uniformed services of the U.S military, a member of the Foreign
Service of the U.S., or an employee of the intelligence community.
·
“Official extended duty” means any period of
extended duty outside of the United States for at least 90 days
during the period beginning after December 31, 2008 and ending
before May 1, 2010.
Call or Email me today for more information!