For most homebuyers, the deadline a receiving tax credits for buying a home passed in April. The Home Buyer Tax Credit incentive offered a credit of $8,000 to first-time home buyers, along with a “long-time resident” credit of up to $6,500 to repeat buyers. The deadline for the at large credit was April 30th to have a binding contract and June 30, 2010 to close on the home. The closing date deadline has now been extended to September 30th, 2010.

Military personnel have an additional year to get a contract and close on a new home through a special extension for the armed forces and other government employees deployed out the United States.

Qualified service members who are ordered on a period of official extended duty have until April 30th, 2011 to get a binding contract on a home in place and until June 30th, 2011 to close. Additionally, a service member who must return to the U.S. for medical reasons before completing his or her tour outside the U.S. may also qualify for the one-year extension.

Eligible parties specifically include members of the uniformed services, Foreign Services or employees of the intelligence community who were on qualified extended duty for at least 90 days during the period beginning after Dec. 31, 2008 and ending before May 1, 2010.

This bill giving the extension to military families can also assist financially strapped military personnel by making mortgage payments tax deductible.

As with any government credit or incentive, let tax professionals, including resources at the Internal Revenue Service, guide you through the qualifying and deduction requirements.

 

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