Congress has acknowledged the unique circumstances affecting members of the military, foreign service and the intelligence community by making the following exceptions that apply to both the $8,000 tax credit for first time home buyers and the $6500 tax credit for repeat home buyers.
EXEMPTION FROM TAX CREDIT RECAPTURE RULES
-Typically, homes that are sold or that cease to be used as a principal residence within three years of the initial purchase are subject to recapture of the tax credit.
-However, qualified service members who sell or move from a tax credit home within three years of the initial purchase due to official extended duty are exempt from the recapture rule.
EXTENSION OF TAX CREDIT DEADLINES
-The home buyer tax credit is available for qualified purchases with a binding sales contract in place on or before April 30, 2010 and closed by June 30, 2010.
-However, for qualified service members who are ordered on a period of official extended duty, these dates are extended for one year. For these home buyers, the tax credit applies to sales with binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011.
DEFINITIONS
-"Qualified service member" means a member of the uniformed services of the US military, a member of the Foreign Service of the US or an employee of the intelligence community.
-"Official extended duty" means any period of extended duty while serving at least 50 miles away from home for a period in excess of 90 days.
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Anna-Lise Troup @ 11:18 AM