U.S. active duty military who are out of the country for 90 days (since 2008) may have an extra year to claim the home buyer tax credit. The tax credit is for up to $8,000 for first time home buyers and $6,500 for repeat home buyers. This is very important news for the Pensacola real estate market, as we have so many active duty military who have served out of the country and are now living in or moving to the Pensacola area. Most are stationed at the Pensacola Naval Air Station.
For more information on the tax credit, see the article Pensacola Real Estate – Tax Credit Information.
The active-duty rule is part of the current tax credit law. The qualification must be for “official extended duty outside the United States for at least 90 days after 2008 and before May 1, 2010.”
If the above condition applies, the homebuyer has an extra year to buy a home. He or she has until April 30, 2011, to secure a binding contract, and until June 30, 2011 to close on the home. Other conditions such as a maximum $8,000 for first-time buyers and $6,500 for move-up buyers still apply.
For advice in any specific case, please consult a qualified tax advisor.
The applicable IRS publication is posted at: http://www.irs.gov/pub/irs-pdf/p3.pdf
If you live in Pensacola and are hoping to buy a Pensacola home before the tax credit deadline, follow the link to Pensacola Homes For Sale to begin your search.