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Who qualifies for the military homebuyer tax credit extension?

Members of the uniformed services, members of the Foreign Service and employees of the intelligence community who served on qualified official extended duty service outside the U.S. for at least 90 days during the period beginning after Dec. 31, 2008 and ending before May 1, 2010.

How much is the credit?

First-time buyers receive up to 10 percent of the cost of the home up to a maximum credit of $8,000 (or $4,000 for a married individual filing separately). Long-time homeowners receive 10 percent of the purchase price up to $6,500 (or $3,250 for a married individual filing separately).

What is the new deadline for using the tax credit?

Eligible homebuyers must enter into a binding contract to buy a principal residence on or before April 30, 2011. The taxpayer then has until June 30, 2011 to close on the purchase.

Which properties are eligible?

Any single-family home to include condos, co-ops and townhouses that will be used as the buyer’s primary residence. This does not include vacation property. The purchase price of the home may not exceed $800,000.

Do both spouses need to be overseas to qualify for the extension?

Only one spouse must be overseas on official extended duty for the requisite amount of time for either spouse to be eligible for the 2011 extension of time to purchase a principal residence and claim the credit.

U.S. Military first-time home-buyers can receive up to $8.000 and long-time homeowners can receive up to $6,000. The deadline is April 30, 2011 by midnight.

Source: U.S. Internal Revenue Service