Eventhough the deadline for receiving tax credits for buying a new home expired in April, eligible veterans who are purchasing a new home are still able to receive a credit up to $6500.

Veterans only need to be in contract by April 30, 2011 and close by June 30, 2011 and they are not required to take a VA mortgages to get the credit.

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 credit is much needed and can help veteran's who are selling their current home and may need to lower their asking price in order to sell their property. The credits and deductions should serve to both help the housing recovery efforts as well as provide additional benefits to service people and their families.

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.

If you or a military personnel you know has or who have or plan on taking advantage of this extension we would love to hear from you. Will this incentive encourage you to purchase a new home?

 

/kh