Home Buyer Tax Credits Available

Federal home buyer tax credit extended for select military, foreign service and intelligence personnel.

Qualified service members who were on official extended duty outside the United States for at least 90 days between January 1, 2010 and May 1, 2010 may qualify for a one year extension on the first time home buyer or repeat home buyer tax credits.  These home buyers must enter into a binding sales contract by April 30, 2011 and close on the home on or before June 30, 2011.

• Up to $8000 First Time Home Buyer Tax Credit.  The tax credit is equal to the lesser of $8000 or 10% of the purchase price of the home.  Qualified service personnel who are single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 can qualify for the full tax credit.
• Up to $6500 Repeat Home Buyer Tax Credit.  The tax credit is equal to the lesser of $6,500 or 10% of the purchase price of the home.  Qualified service personnel who are single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 can qualify for the full tax credit.
• Residency Rules.  The tax credit typically does not need to be repaid if the home is occupied as the buyer’s personal residence for the first three years from the date of purchase.  However, qualified service personnel who sell or move from a tax credit home during the first three years due to official extended duty are exempt from having to repay the tax credit.
• Tax returns. A tax professional should be contacted to determine how to arrange for the tax credit.

Resources:
Home Buyer Tax Credit Rules for Members of the Military, the Foreign Service and the Intelligence Community
National Assocation of Homebuilders

Dominion Homes is providing this information for general guidance only and it does not constitute the provision of legal advice or tax advice of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, potential home buyers should consult a qualified professional adviser to whom they have provided all of the facts applicable to their particular situation or question.