Tax Credit Extended for Armed Forces

Question: Did the Federal Tax Credit for new home purchases expire on April 30, 2010 this year?

Yes and No...

The Federal Tax Credit did expire for the vast majority of us, but for some it has actually been extended. The extension requires the homebuyer to be in contract by April 30 2011 and closed by June 30 2011. So who exactly can still take advantage of this credit? Members of our armed forces, foreign service members, and members of the intelligence community.

The thought behind this move is based on the fact that many have been and are currently posted overseas making it next to impossible for them to take advantage of the initial tax credit offering. Considering their service is in the name of our Country, this seems like a very reasonable extension.

"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 individuals spouse) who serves on a 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."

This tax credit is only available on primary residences and offers 8,000 dollars for first time home buyers and 6,500 for repeat buyers similar to the expanded offering of the original credit. It should be noted a first time home buyer is anyone that has not owned a home for the last three years.

Needless to say this provides a significant opportunity for many members returning from Iraq and Afghanistan.

To the members of our Armed Forces, thank you all for your service