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There Is Still a Tax Credit Available!

As Veteran’s Day passed last week, I forgot to remind everyone to thank those who have served our country AND to remind everyone out there in the blogosphere that eligible Veterans are still able to take advantage of the Federal Tax Credits that expired for the rest of the population a few months back.

Yes, eligible First Time Home Buying Veterans only need to be in contract by April 30, 2011 and close by June 30, 2011 to receive the  up to $8000 tax credit on their income tax return.

And yes, eligible Repeat Home Buying Veterans can receive the up to $6500 credit.

And no, they do not have to take VA mortgages to get the credit (even though we have often discussed the benefits of VA financing in this space).

Scenarios to think about:

1. Home buying Veteran gets their tax credit to fund some home improvement

2. Or to buy furniture

3. Or to consolidate other debt

4. Or to pay discount points (two benefits here.  One, the points are tax deductible. And two, they result in a lower rate to help qualify for bigger mortgage/better home or just lower the monthly carrying costs.)

5. What this tax credit may be able to do is ease the pain of a seller who is a veteran that has to lower their asking price because they will receive the benefit on their home purchase.

I have heard the arguments about whether or not the previous tax credits helped sell more homes, but I don’t think that matters because that is an “industry/political argument”.  What I am talking about here is the opportunity for individual families that shouldn’t be wasted because of a lack of knowledge.

The mission of this blog is to get the information into the hands of the people.  Well, people….are you going to make sure every Veteran you know is aware of this opportunity?


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6 replies
  1. Dick Buffum
    Dick Buffum says:

    I believe that the extended credit is only for service members who was on extended duty (overseas) for 90 days or more between Jan. 1, 2009 to April 30, 2010. They have until April 30, 2011, to sign a purchase contract and until June 30, 2011 to close on the property sale.

    Reply
  2. Dean Hartman
    Dean Hartman says:

    from the IRS website:

    Additionally, there are new benefits for members of the military and certain other federal employees:

    Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.

    Reply

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