Did you know that the First Time Homebuyer Tax Credit is STILL AVAILABLE for some buyers?
When Congress signed into law the "Worker, Homeownership and Business Assistance Act of 2009" back in November of 2009, they expanded the homebuyer tax credit benefits to members of the military who served on "qualified official extended duty service" OUTSIDE the United States for at least 90 days between 1-1-2009 THRU 4-30-2010.
- You must be a member of the uniformed services, members of the Foreign Service or employees of the intelligence community
- You must have served on qualified official extended duty for at least 90 days during the period beginning AFTER December 31, 2008 and ENDING BEFORE May 1, 2010.
- For married couples, only one spouse has to have been overseas during this time to qualify
- The repayment or recapture requirement is waived if the home ceases being the taxpayer's principle residence or if it is sold after Dec 31, 2008 if due to qualified service either in the states (at least 50 miles away) or overseas.
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.
Question and Answer
Q. Are both spouses required to be overseas for the requisite time period in order to qualify for the 2011 extension to claim the credit?
A. Only one spouse must be overseas on official extended duty for the requisite amount of time for either spouse to be eligible for the 2011 extension of time to purchase a principal residence and claim the credit.