Deployed Military Receive a One Year Extension for Tax Credits

As we reach the deadline for the housing tax credits this week (Friday, April 30th!!!) we thought it would be wise to highlight a special group of folks that receive an extra year to take advantage of the $8,000 and $6,500 tax credit programs. All the other rules apply except the deadline to obtain an accepted offer is extended to April 30th, 2011 and the deadline to close is June 30th, 2011! We urge you to consult with the IRS and/or your tax consultant for details to see if you qualify. Below we took some info directly from the IRS website and also provided a link directly to the section of their website that has the details. 

Big thanks to all our service members from NP Dodge and the entire Omaha Community and don't forget to look us up when you return home!!

The info below is direct from the IRS website:

There are new benefits for members of the military and certain other federal employees:

• Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. 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 individual's spouse) who serves on 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.

• In many cases, the credit repayment (recapture) requirement is waived for members of the uniformed services, members of the Foreign Service and employees of the intelligence community. This relief applies where a home is sold or stops being the taxpayer's principal residence after Dec. 31, 2008, in connection with government orders received by the individual (or the individual's spouse) for qualified official extended duty service. The credit is still allowable even if this happens during the year of purchase. Qualified official extended duty is any period of extended duty while serving at a place of duty at least 50 miles away from the taxpayer's principal residence (whether inside or outside the U.S.) or while residing under government orders in government quarters. Extended duty is defined as any period of duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.

IRS Website W/ More Info