U.S. Military and Foreign Service Personnel May Still be able to claim a Homebuyer Tax Credit!

The famous homebuyer tax credits, as extended, are long gone now.  Or are they?  Actually, they are still available to you, but only if you are a member of the armed services, foreign service, or U.S. intelligence.  In that case, you have until April 30, 2011 to enter into a contract for the purchase of your primary residence, and until June 30, 2011 to close it!

In order to qualify, you must have been on official duty outside of the United States for at least 90 days, anytime between December 31, 2008, and May 1, 2010.  If you were married and on official duty outside of the United States for such a 90 day period, then your spouse also qualifies for the extended eligibility timeframe for the home buyer tax credit.  Both spouses need not be overseas — so long as one spouse qualifies, the spouse who remains in the United States receives the extension as well.

There is still more good news:  If you purchase a home and receive the home buyer tax credit, and you (or your spouse) are subsequently ordered for extended duty, you will not be required to pay back the credit if you sell the home or it ceases being your principal residence.  What qualifies as extended duty for these purposes?  Well, if you need to travel more than 50 miles from your new home for 90 days or more, or if you need to live in government housing for 90 days or more, the IRS cannot require you to repay the tax credit.  The IRS repayment and recapture requirements for the home buyer tax credit are quite strict, so this is a great incentive!