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______Call_Direct_Mike Krokowski_@_(843) 222-3434______
Tax Credit Extension for Home Buyers: UPDATE November 2009First Time Home Buyers Tax Credit Extension The Worker, Homeownership, and Business Assistance Act of 2009 have extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
About the Move-Up/Repeat Home Buyer Tax Credit The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010). Special Rules for Members of the Military, the Foreign Service
Congress has acknowledged the unique circumstances affecting members of the military, the Foreign Service and the intelligence community by making the following exceptions that apply to both the $8,000 tax credit for first-time home buyers and the $6,500 tax credit for repeat home buyers. Exemption from Tax Credit Recapture Rules · Typically, homes that are sold or that cease to be used as a principal residence within three years of the initial purchase are subject to recapture of the tax credit. · However, qualified service members who sell or move from a tax credit home within three years of the initial purchase due to official extended duty are exempt from the recapture rule. Extension of Tax Credit Deadlines · The home buyer tax credit is available for qualified purchases with a binding sales contract in place on or before April 30, 2010 and closed by June 30, 2010. · However, for qualified service members who are ordered on a period of official extended duty, these dates are extended for one year. For these home buyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011. Definitions · “Qualified service member” means a member of the uniformed services of the U.S military, a member of the Foreign Service of the U.S., or an employee of the intelligence community. · “Official extended duty” means any period of extended duty while serving at least 50 miles away from home for a period in excess of 90 days.
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