TAX NEWS - JUNE 2010

US Tax: Tax credit extended for military personnel

by Rona Fischman, 04 June 2010 -- Just when I thought home buyer tax credits were a thing of the past, my friends and colleagues at the National Association of Exclusive Buyers Agents sent me a press release about a new bill that extends the credit for our servicemen and women. Because members of the military, the Foreign Service and Intelligence Community have unique circumstances, the bill has special provisions for this group:

- Tax credit extended for one year for military personnel serving outside the United States for at least 90 days in 2009 or 2010.

- Eliminates the 36-month recapture requirement for military personnel, including members of the Foreign Service and intelligence community, forced to sell or move from a tax credit home as a result of an official extended duty of service.

The tax credit is available for eligible purchasers who have a binding sales contract in place by April 30, 2011, and close by June 30, 2011.

Who would have thought that I'd ever say anything nice about a homebuyer tax credit?

However, a credit aimed at our military members is something I can get behind. There may be locations where it will cause a flux in demand, but I don't expect that to be the norm. Therefore, it will be a help to these buyers.

I have worked with buyers who used Veteran's Administration (VA) low down-payment loans. (They have a very low default rate, but the way!) I am a fan of the GI Bill which assisted my father when he bought the house I grew up in. Therefore, I'm pleased that our servicemen and women will get a break on this homebuyer tax credit. They deserve one!

I agree with NAEBA President, Benjamin Clark who said:

"We honor those who serve our country and are glad that this bill acknowledges the unique circumstances they face,"

Happy weekend after Memorial Day. Thank you to all who serve in our armed forces.