If you are one of the many men and women who serve our country in the military or Foreign Service, there are two things that you should know. First, we here at Pesner | Kawamoto | Conway thank you for your service. Second, if you were on duty outside of the United States for at least 90 days during the period between January 1, 2009 and April 30, 2010, you may still be eligible for the first time homebuyer tax credit as a result of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.
The first time homebuyer credit was designed to give a tax credit of $8,000 to those who met the qualifications. However, the credit program ended for purchases after September 30, 2010. Congress extended the credit to those serving overseas through the aforementioned Act.
There are a few requirements in order to claim the tax credit under this Act. First, of course, you must be a first time homebuyer. Second, you must enter into a binding real estate sales contract before May 1, 2011 and your settlement date must be before July 1, 2011. Third, your new home purchase price less than $800,000.00 and the purchaser exercising the credit must be at least 18 years of age. Finally, the home you are buying must be an arms-length transaction, meaning that you cannot be purchasing the home from your relatives.
If you believe that your eligible or you have further questions about your potential eligibility, you should consult with a tax advisor.
