Even with Tax Day 2011 more than nine months away, it’s not too soon for some military personnel to think about taking advantage of the homebuyer tax credit extension.
Though some non-military taxpayers already got the tax return, and others have until Sept. 30 to close a deal, qualified members of the Armed Forces, Foreign Service and intelligence community have longer deadlines if they served official extended duty.
To use the homebuyer tax credit, qualified members need to sign a binding sales contract by April 30, 2011. They’ll then have two months to close the deal. Military members who were overseas for at least 90 days between January 1, 2009 and April 30, 2010 are likely eligible for the extension.
Service members coming back to Keesler Air Force Base and NCBC Gulfport will get some great benefits if they can find a home in the local area. Besides proximity to the bases, homes here are close to the beautiful St. Louis and Biloxi Bays. Also, first-time homebuyers can earn $8,000 or 10 percent of the home’s price depending on which figure is lower. For a $150,000 starter home, the maximum return could be more than 5 percent of the purchase price.
Repeat buyers can get a maximum return of $6,500. As with any tax credit program, there are several eligibility requirements:
-Military members and their spouses cannot have owned a home in the last three years in order to be considered a first-time homebuyer.
-Married couples with an annual income of $250,000 and individuals with that of $125,000 are not eligible for the tax credit extension.
-The maximum purchase price of a home cannot exceed $800,000.
-For repeat buyers, all requirements are the same and they must have occupied their last home for five of the last eight years.
-The tax credit will not be recaptured if homebuyers have to sell or vacate their home within three years of purchase because of another stint overseas.
Active-duty military members have the additional option of using the tax credit in combination with a VA loan, which boasts myriad financial benefits. Since its creation in 1944, the VA loan program has helped more than 18 million men and women purchase a home.
There’s no better time than now for military personnel to decide on using the tax credit extension, even if filing for taxes is at the bottom of priority lists.
Guest Post By James Kelley:
James Kelley blogs on veteran’s issues and real estate in the United States at VA Benefit Blog .He also works for VA Mortgage Center, proudly serving American military families as the nation’s premier VA lender.
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