Active Duty Military Can Still Get Home Buyer Tax Credit -Seattle Homes-Seattle Real Estate-Seattle Homes For Sale-Http://www.ThachRealEstateGroup.com

The home buyer tax credit deadline is fast approaching for active duty military service members. While the original home buyer tax credit ran out in April of 2010, service members were given until April 30, 2011, to get a home under contract and take advantage of up to $8,000 in tax credits for first-time buyers and $6,500 in credits for repeat buyers.

Members of the uniformed services, members of the Foreign Service, and employees of the intelligence community are eligible for the tax credit if they if they served on official extended duty outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.

A person that is forced to return to the U.S. for medical reasons before completing an assignment of at least 90 days of qualified official extended duty outside of the United States may also qualify for the one-year extension.

“Congress acknowledged the unique situations affecting members of the military, the Foreign Service, and the intelligence community and passed this extension in 2009,” said Veronica Pianca, vice president of relocation and business development for Ruhl&Ruhl REALTORS®, Davenport, Iowa.

$8,000 First-time Homebuyer Tax Credit at a glance

• The $8,000 tax credit is for first-time home buyers only. For IRS purposes, you’re a first-time home buyer if you haven’t owned a principal residence during the three-year period before you purchase your new home.

• You have to repay the tax credit if you sell the home or stop using it as your principal residence within three years of purchase.

• To calculate your tax credit, multiply the purchase price by .10. You can take a maximum of $8,000.

• The tax credit applies only to homes priced at $800,000 or less.

• For homes purchased after November 6, 2009, and on or before April 30, 2011, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

The $6,500 Move-Up/Repeat Homebuyer Tax Credit at a glance

• You qualify for the Repeat Homebuyer Tax Credit if you’ve owned and lived in your previous home for five consecutive years out of the last eight years.

• You have to repay the tax credit if you sell the home or stop using it as your principal residence within three years after the initial purchase.

• To calculate your tax credit, multiply the home price by .10. You can claim up to $6,500.

• The tax credit applies only to homes priced at $800,000 or less.

• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

Source: Ruhl&Ruhl REALTORS®