Homebuyer Tax Credit Extended for Military


Many people may not be aware of this, but the Homebuyer Tax Credit has been extended for the military and certain other federal employees. This was actually part of the Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009.

Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the Homebuyer Tax Credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011.

If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase.

Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It 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.

In many cases, the credit repayment (recapture) requirement is waived for members of the uniformed services, members of the Foreign Service and employees of the intelligence community. This relief applies where a home is sold or stops being the taxpayer’s principal residence after Dec. 31, 2008, in connection with government orders received by the individual (or the individual’s spouse) for qualified official extended duty service. The credit is still allowable even if this happens during the year of purchase.

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.

One common question I’ve heard: Are both spouses required to be overseas for the requisite time period in order to qualify for the 2011 extension to claim the credit? 

Answer: 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.

If you know someone in the military or a federal employee serving outside of the U.S., be sure to let them know that they can still qualify for either the $8,000 First Time Homebuyer Tax Credit or the $6,500 Homebuyer Tax Credit.

Just out of curiosity, how many people knew about this extension?

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7 Responses to “Homebuyer Tax Credit Extended for Military”

  1. Dennis Doll Says:

    Judy, thanks to your department, we did know about this extension. My webpage was changed the morning we heard. I was ready to take the site down but now it remains active for those who may qualify.
    Another chance to target a market and find new Buyers!

  2. Simah Benyamin Says:

    Yes, I knew about this. I read about it in the Metro Minute. I will be revising my site with this updated info. This is a great chance to target Military Buyers.

  3. Doris Redfearn Says:

    This article highlights why it’s so important to read BHGRE/Metro Minute articles so that we can always be educated and informed when its comes to serving our clients.

  4. Bobbie Conner Says:

    We actually discussed this last month at our Conyers sales meeting. I visited Stonecrest for a special evening meeting and they announced it as well. It was also nice to see local affiliates getting the word out at EMBOR’s Affiliate Trade Show in April. Judy, you do a fantastic job keeping us informed with timely articles. It is so helpful to have all the details at our fingertips. Thank you for helping us stand out as knowledgeable Realtors.

  5. Paradise Gray Says:

    Yes, I knew about this, but was not clear on the details. Thanks for sharing.

  6. Andy Says:

    Finally some good actions by the govt to help those protecting our nation!

  7. Bob Says:

    That’s great news, i was searching for this news details. Thanks for such nice post. I am also looking for home and have contacted Ar4homes – realtor broker, hope will get a my dream home.

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