First Time Homebuyers Tax Credit Update

Q. Have all the provisions of the first-time homebuyer credit expired?

A. To be eligible for the first-time homeowner tax credit, you had to enter into a contract to buy a principal residence on or before April 30, 2010, and close by June 30, 2010.

There is good news, however, for members of the military and certain other federal employees (Foreign Service and the intelligence community) serving outside the U.S. They have an extra year to buy a principal residence in the U.S. and qualify for the credit. They must enter into a contract to buy the residence on or before April 30, 2011, and close by June 30, 2011.

This applies to any individual (and, if married, the spouse) who serves on qualified official extended duty outside the U.S. for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.

Also, the requirement that a buyer must repay the credit if they move out of their new home within three years has been waived if the move is due to government-ordered extended duty service.

If you have any questions, or need capable and trustworthy representation, please call me at 206-226-0565.