Though the Federal First Time Home Buyers tax credit ended on April 30, 2010, active duty military, foreign service or members of the intelligence community who have been stationed outside the US still have the option to claim the credit.
The extension 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. For these home buyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011.
A person who 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.
If you recently returned from an overseas assignment and rented a home in Northern Virginia thinking you had missed the credit then you are in luck. You can still take advantage of lower prices and great interest rates. As always before undertaking a purchase as large and important as a new home you should check with your tax professional to determine your qualifications for the extended tax credit. You may find that you haven’t missed your chance at a little extra assistance after all.
For more information on changes to tax laws specific to military families check out the IRS website.