Military Members Benefit from Tax Credit Being Extended

Military Members Benefit from Tax Credit  Extension.

The $8,000 tax credit created a lot of buzz for real estate this year.  Millions of families received the credit and thousands waited anxiously to know if there would be an extension of the deadline.  

Unfortunately, there was no extension for the average citizen.  However, members of the military, Foreign Service and intelligence community returning home to Michigan in 2010 will be happy to know that the deadline was moved to April 30, 2011.  That ís one extra year to make those home ownership dreams come true.

Of course, service men and women more than deserve the additional time to find a home due to their special schedules and circumstances.  

Besides the mortgages general rules and perks of the credit, there are a couple of other exclusive benefits for qualified service members.

1.   Qualified service members who have to move from a tax credit home due to leaving for duty are exempt from having to pay back the tax credit also known as the ìrecaptureî rule.

2   Military members spouses are also eligible for the tax credit.  The spouse does not have to be serving overseas with their husband or wife to qualify for the credit.

3    April 30, 2011 is the deadline for signing a contract on a home.  The final sale does not have to be made until June 30, 2011.

4    This does not really come with the credit, but I should mention the ever-growing popularity of the VA loan.  Speak with a mortgage counselor today to find out further info about the VA mortgage program.

General rules and modifications on the credit include:

1  A serviceman or woman must have served abroad for 90 days between January 1, 2009 and April 30, 2010 to qualify for the credit.  A person who was not able to complete his or her duties during those dates due to medical reason may still be able to receive the credit.

2   Income requirements were modified. Now, a single-person buyer is allowed a salary up to $125,000.  For a married couple, the limit is $225,000.  Allowances might be made for some above the annual income.

3    The home purchased must be less than $800,000.

So once again, the real estate market will benefit from the numerous military members and their families achieving their goals of home ownership next year. A great and admirable group of consumers.

For more information on the extension, visit the IRS website.

****This is a guest blog by James Kelly who works for VA Mortgage Center.com, proudly serving American military families as the nation’s premier VA lender.***

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