FIRST-TIME HOME BUYER CREDIT CONTINUES FOR MILITARY INTO 2011

 

Press Information
For Immediate Release
March 21, 2011 
   

 

 
CONTACT: Martha O’Gorman
Chief Marketing Officer
(800) 790-3863 ext. 8022
martha.ogorman@libtax.com
 

 

FIRST-TIME HOME BUYER CREDIT CONTINUES FOR MILITARY INTO 2011
LIBERTY TAX COVERS CLAIMING THE CREDIT FOR 2010 FILING
  

 

(Virginia Beach, VA) The first-time home buyer’s credit was extended into 2010, and it continues for military for another year through April 30, 2011.  In order to claim the credit, the taxpayer must have a signed purchase contract for a principal residence in force before May 1, 2010 and must have closed on their home purchase by September 30, 2010.  Thus, for qualifying military, if a binding contract is entered into by April 30, 2011, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It 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.    

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.  

First-time home buyers who have not owned a principle residence for 3 years prior to the purchase of a new home were eligible for a credit of up to $8,000.    

“If the first time home buyers credit was claimed in 2008, repayment of the credit will start when filing a 2010 return,” reminds John Hewitt, CEO of Liberty Tax Service.  

For homes purchased after December 31, 2008, the credit will not have to be repaid if the home buyer uses the home as their principal residence for 3 or more years.  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.  

 Those serving in the military will not be penalized if they claimed the credit and then have to deploy and sell their home within three years.      

 

 

 

About Liberty Tax Service     

Liberty Tax Service is the fastest -growing retail tax preparation company in the industry’s history.  Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 8,000,000 individual income tax returns.  With 42 years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service.   

 

Liberty Tax Service is the only tax franchise on the Forbes “Top 20 Franchises to Start,and ranks #1 of the tax franchises on the Entrepreneur “Franchise 500.” Each office provides computerized income tax preparation, electronic filing, and online filing through eSmart Tax.  Other services include audit assistance, a money back guarantee, and free tax return checking.   

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