Military service men and women who missed the homebuyer tax credit may be eligible for an extension. The incentive, which provides up to an $8,000 credit for first-time homebuyers and $6,500 for repeat owners will be extended to April 30, 2011, for military, foreign service and intelligence members.
"We honor those who serve our country and are glad that this bill acknowledges the unique circumstances they face," National Association of Exclusive Buyer Agents president Benjamin Clark said. "This bill ensures that members of the military have equal opportunity to participate in the homebuyer tax credit and offers relief to struggling military families by making the mortgage payment tax deductible."
The extension will apply to military personnel on a tour of duty outside the U.S. for at least 90 days between December 31, 2008, and May 1, 2010. The special rules also shield members from the 36-month recapture law if they are forced to relocate or sell their home purchased under the credit due to an extended duty of service.
Military personnel who plan to purchase a home under the extended rules should consult a tax preparer during filing season to ensure their income paperwork is accurate.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.