Tax Credit Extended For Military Personnel on Homes For Sale in Dallas
July 15, 2010 by Kenneth Cox · Leave a Comment
Tax Credit Extended For Military Personnel on Homes For Sale in Dallas
Dallas Home Buyer Tax Credit Military Personnel
The tax credit hype ended for most buyers on April 30, 2010, but qualifying military personnel buying a home in Dallas still have time cash in. Qualified service members ordered on a period of official extended duty were granted an extension to take advantage of the home buyer tax credit by securing a binding contract on or before April 30th, 2011 and closing on the sale by June 30th, 2011. Qualified Service Member includes (Army, Navy, Air Force, Marines) members of the uniformed services of the U.S. Military, Members of the Foreign Serivice of the U.S., and employees of the Intelligence Community. Official extended Duty is defined as any period of extended duty outside of the United States for at least 90 days during the period beginning after December 31st, 2008 and ending before May 1st, 2010.
Tax Credit Guideline Summary For 1st Time & Repeat Home Buyers:
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A tax credit of up to $8,000 is available for first-time home buyers purchasing on or after January 1, 2009 and on or before April 30, 2010. In cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by September 30, 2010 will qualify.A tax credit of up to $6,500 is available for repeat home buyers who have owned a home for five consecutive years out of the prior eight years. The repeat home buyer tax credit applies to houses sold after November 6, 2009 and on or before April 30, 2010. In cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by September 30, 2010 will qualify.
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Income limits of $125,000 for individuals and $225,000 for married couples filing jointly apply to all sales occurring after Nov. 6, 2009.The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009 are $75,000 for individual taxpayers and $150,000 for married couples filing jointly.
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Homes priced above $800,000 are not eligible for either the first-time home buyer tax credit or the repeat home buyer tax credit.
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Home purchases in 2010 may be claimed on an amended 2009 income tax return.
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Persons who are claimed as dependents by a taxpayer or who are under age 18 do not qualify for a tax credit.
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Home purchases from relatives of the taxpayer or the taxpayer’s spouse do not qualify for the tax credit. The IRS defines relatives as ancestors (parent, grandparent, etc.), lineal descendants (child, grandchildren, etc.) and spouses.
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Married couples are not eligible to claim the first-time home buyer tax credit if either spouse has previously owned a home. They may, however, qualify for the repeat home buyer tax credit.
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Neither the first-time home buyer tax credit nor the repeat home buyer tax credit have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
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Taxpayers must submit a copy of the HUD-1 settlement statement and IRS Form 5405 to claim either the first-time home buyer tax credit or the repeat home buyer tax credit.
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Congress also extended the deadline for closing transactions that met the requirements of a binding sales contract on or before April 30th. Preivously, home buyers were required to close the transaction on or before June 30th, but new legislation extended the closing deadline for these pending transactions to on or before September 30th, 2010. For a complete breakdown on the home buyer tax credit including extensions and updates, check out Federal Housing Tax Credit.
Buying a Home in Dallas | Dallas Homes For Sale
If you are a military service member and thinking of buying a home in Dallas Texas, contact one of our agents to learn more about the tax credit and other incentives you may be eligible for. Our real estate agents can assist with all types of Dallas Homes For Sale including urban condos, townhomes, lofts, and high rises.
