Military families who purchased a home in 2010 and 2011 can get financial help from the Homebuyer's Tax Credit. While the tax credit for civilians applied only to homes purchased (or under a binding sales contract) by the end of April 2010 and expired at the end of September 2010, the Worker, Homeownership and Business Assistance Act that Congress passed in November 2009 provided servicemembers with additional time to qualify for an $8,000 first-time buyer tax credit or a $6,500 repeat buyer tax credit.
In order to qualify for the tax credit, you must have:
- entered into a binding sales contract by April 30, 2011 to buy a home that serves as your main residence;
- closed on the home by June 30, 2011; and
- served on qualified official extended duty service outside the U.S. for at least 90 days between December 31, 2008, and May 1, 2010.
Congress also waived the 36-month recapture requirement -- which requires repaying the tax credit -- if military personnel are forced to sell or move from a tax credit home because of a qualified official extended duty of service.
To learn more about the extension of the Homebuyer's Tax Credit for military servicemembers, and how to claim the credit, visit the website of the IRS.
For more information about buying or selling a home -- including loans, insurance, closing costs and more -- see the Additional Resources of the Spending section of SaveAndInvest.org.
Not sure if you should rent or buy? Check out the Should I Rent or Buy? section.