Accordin to our Rhonda Johnson at AKUSA Mortgage....
Although the $8,000 federal tax credit for first-time home buyers ended April 30, certain members of the military and certain other federal employees who were stationed overseas have another year to take advantage of this program.
Congress approved the extension to accommodate service members who may have missed the window of opportunity to claim the tax credit due to being posted overseas.
The rules for the extended program are as follows::
· Who qualifies? The buyer must be a member of the uniformed services of the U.S. military, a member of the Foreign Service of the U.S., or an employee of the intelligence community. In addition, they must have served on official extended duty--outside the U.S.--for 90 days or more at any time after Dec. 31, 2008 and before May 1, 2010. Only one spouse is required to be overseas to qualify for the extension, according to the Internal Revenue Service.
· What is the deadline? A sales contract must be signed by April 30, 2011, and settlement/closing must take place on the home by June 30, 2011.
· Does this apply to a vacation or second home? No. The tax credit applies only to a principal residence in the U.S.
· Is the extension only for first-time home buyers? No; qualified service members may take advantage of the $6,500 repeat home buyer tax credit.
· Will the buyers lose the credit if they sell the house within a few years? If the qualified buyers have to sell their house because they received government orders for extended duty service, the requirement to repay the credit for moving out of the house within three years is waived.
For more information click on the following link:
http://www.federalhousingtaxcredit.com/service_mem.php
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