Extra Tax Credit Benefits For Military Buyers

Military personnel and federal employees, such as members of the foreign service and employees of the intelligence community, are able to enjoy additional benefits when it comes to the homebuyer tax credit.

Typically, in order to claim the tax credit, eligible buyers must enter into a contract to purchase a principal residence by April 30, 2010, and close the transaction no later than June 30, 2010. However, according to the IRS, servicemen and women get an extra 12 months, allowing them until April 30, 2011, to sign a binding contract and until June 30, 2011, to close the purchase.

The extension is available to individuals or their spouses who serve on qualified official extended-duty service outside the country for at least 90 days between Jan. 1, 2009, and April 30, 2010. In order to qualify, only one spouse needs to be overseas during that time frame.

In addition to the extension, eligible members of the armed services, intelligence community or foreign service do not have to repay the credit if their home is sold or ceases to be a primary residence within the first three years as a result of orders sending them to a new duty station at least 50 miles away.

For more information, check out this link (it goes to the IRS’ website).

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