Login »

Email: Password:


Claim Your Tax Credit Now
Let's get you started.

 

 

First-time buyers tax credit is available to military members and certain other federal employees through April 30, 2011.

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 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.

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.

Source: IRS.gov

$8,000 tax credit

  • The temporary credit is only available for home purchases that go to contract on or before April 30, 2011.
  • It’s equal to 10% of the cost of the home, up to a maximum credit of $ 8,000. (for example a home purchased for $80,000 or more would qualify for the full $8,000 credit while a $70,000 home would qualify for only 10% or $7,000.) But homes that cost more than $800,000 are ineligible for any tax credit.
  • This is a tax credit which is even better than a tax deduction; it’s subtracted directly from your tax liability. If the credit is more than your total tax liability that year, you will receive a refund check for the balance. (Note that a married buyer filing separately is only eligible for up to a $4,000 credit.)
  • Eligible properties include anything that will be used as a principal single- family residence, including condos and townhouses.
  • First-time home buyers can take advantage of the full $8,000 tax credit. A first-time buyer is defined as and individual who has not owned a home the past three years. For married joint filers both must on a joint return.

Claim Your Tax Credit Now. Let's get you started.

For more details regarding these extended and expanded tax credits, please contact our Internet Coordinator. You can also download Form 5405 from the IRS to claim your tax credit

For more information about what's available on the market, contact your nearest William E. Wood and Associates' office or visit our Property Search for all the latest listings.

 

Source: Virginia Association of Realtors®