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Home Buyer Tax Credit Extended For Active Duty Military

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.

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Pensacola Real Estate – Tax Credit Information

It takes time to find the right Pensacola home for sale that suits your needs. Finding and getting real estate under contract rarely happens quickly. There are currently over 4500 Pensacola homes and condos for sale. If you want to take advantage of the tax credit, you need to move quickly. There are only 54 days left (from March 6, 2010) to get a home under contract by April 30, 2010. Next, the home must be closed by June 30. This is not a lot of time.

If you decide to purchase a Short Sale property, the chances of getting it under contract before the deadline are very slim. (See article Short Sales – Are They Worth It). However, there are many affordable conventional sales available, and quite a few bank owned properties on the market.

Here are some links to help you understand more about the homebuyer tax
credit and take advantage of it:

IRS First-Time Homebuyer Credit Q & A
 

IRS Form 5405 (to take the tax credit)

Frequently asked questions about the $8,000 first-time home buyer tax
credit

Frequently asked questions about the $6,500 tax credit for repeat home buyers

Some key points for prospective home buyers

Pensacola Military: Since we have such a high military presence in
Pensacola (thank goodness, what would we do without you great men and
women), the link below is very important to members of the military who
are looking for Pensacola Homes For Sale before the tax credit deadline.

Special rules that apply to members of the military, the foreign service and the intelligence community

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