April 13, 2011 (Chris Moore)
An extension that was enacted as part of the Worker, Homeownership and Business Assistance Act of 2009 for Military personnel, members of the Foreign Service, and intelligence community employees who served at least 90 days of extended duty, and their spouses, is set to expire on April 30, 2011.
Eligible employees can claim tax credits of up to $8,000 but must enter into a binding contract by April 30th and must close the purchase by June 30, 2011.
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 after December 31, 2008, and ending before May 1, 2010.
Requirements of the program are:
– The purchased home must be your primary residence
– The home may not be purchased from a parent, spouse, or child
– The home may not be purchased from an entity in which the seller is a majority owner
– The home may not be acquired by gift or inheritance
– The home sale price may not exceed $800,000
– Buyers may not earn more than $125,000 as single-filers; $225,000 as joint-filers
– Only one spouse must be overseas on official extended duty for the requisite amount of time for either spouse to be eligible for the 2011 extension of time to purchase a principal residence and claim the credit.
More information on the extended Worker, Homeownership and Business Assistance Act of 2009 is available on the IRS website.
Tags: home buyer assistance, Worker, Homeownership and Business Assistance Act of 2009, military members, Foreign Service, intelligence community, extended duty