The federal tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to that deadline. Members of the Armed Forces, military intelligence and Foreign Service who are on extended overseas duty or who have been on active duty for more than 90 days in 2008 and 2009 have another year to use the tax credit (through June, 30, 2011).
The qualifying income limits to $125,000 for single tax filers (up from $75,000 previously) and $225,000 for joint filers (up from $125,000). The purchase price of the home is still capped at $800,000.
Military personnel who sell their homes within the first 36 months because they are transferred to a new duty station or sent overseas will not be responsible for repaying the tax credit. the time they spend away from their homes while serving their country will count toward fulfilling the requirement.
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