Vets Get One Year Tax Credit Extension

As part of the Economic Stimulus Package, the federal government is encouraging renters to become homeowners by offering a tax credit. This credit requires that the buyer enter into a contract by April 30, 2010, and close the escrow by June 30, 2010.

However, members of the Military, the Foreign Service, and employees of the intelligence community have an extra year, through to buy a principal residence in the U.S. and claim the federal tax credit.

Here is what the IRS states on their website:

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.