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Tax Credit
Information for Veterans
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 a
homebuyer tax credit. 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.
This could be the opportunity of a
lifetime, but time is of the essence for buyers who want to
take advantage of this opportunity.
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Members of the uniformed services,
members of the Foreign Service and employees of the intelligence
community may be eligible. Eligibility 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. If married, 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.
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.
Contact us
to find out if you qualify!
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