8 Responses to “Veteran’s Last Chance for 2011 Homebuyer Tax Credit April 30th”

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   Tracy Emery 4 April 2011 at 4:28 pm #

   I read somewhere that to qualify under the 2nd time buyer (6500), you had to live in your last residence for 6 of the last 8 years. We lived in our first home for 4 years (have owned for 4 1/2), but had to move due to military orders. Do we still qualify?
   Also, we have an accepted offer from the seller on a short sale, but the bank still hasnt approved it. Does the bank have to accept it before april 30th in addition to the seller to qualify?
   Thanks for your help!
   Tracy

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     Scott Schang 4 April 2011 at 4:41 pm #

     Hi Tracy,

     The “long time” homebuyer requirement is that you must have lived in the home for 5 consecutive years during the eight-year period that ended on the date the new home is purchased.

     Here is an article I wrote that quotes the “Seven things the IRS wants you to know about claiming the credit”

     I would call the IRS for guidance on that question – I am not entirely sure how they would look at that.

     To answer your second question, the guidelines state that you must enter into an executable contract on or before April 30th – It sounds like you’ve met that requirement. The challenge may be however that the purchase must be completed on or before June 30th. This is where you may run into challenges if the short selling bank takes longer than that to give you and answer.

     Hope this helps to anser your questions?

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2. 

   kenneth 20 October 2011 at 10:08 pm #

   Is there any exemptions, was on a combat deployment and did not get back till March of 2011 so i was not able to put in sales agreement till july due to loan aproval, and i closed on aug 23rd, do i still qualify?

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     Scott Schang 20 October 2011 at 10:36 pm #

     I sure wish I had a good answer for you Kenneth. I’ve been on the phone with the IRS regarding this VA tax credit question. I was told that you basically go down the list of qualifying requirements and if you miss one, you’re ineligible. Unfortunately, those dates are outside of the requirements. Congratulations on your purchase though, and thank you for your service to our Country.

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3. 

   Jeremy 11 January 2012 at 12:46 pm #

   So if you a vet and you did all the paperwork before April 2011 and closed before June 2011 you can still get the credit we put in our offer.back in March I am a oif vet and we closed on our home may25 so will we qualify for this credit the and if so what info do I have to bring with when I do my taxes to get this credit

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     Scott Schang 11 January 2012 at 1:01 pm #

     There is additional criteria for qualifying for the Veteran’s tax credit – There is a lot more information in this article: http://www.homeownershipuniversity.com/tax-credit/time-home-buyer-tax-credit-2011-veterans/

     And here is more information about eligibility and applying from the IRS website

     The military exception is for any person or spouse of a person that serves overseas for 90 days between Dec. 31, 2008 and ending before May 1, 2010. Here is a description of the Military exception from the IRS website: http://www.irs.gov/newsroom/article/0,,id=215594,00.html

     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.
     In many cases, the credit repayment (recapture) requirement is waived for members of the uniformed services, members of the Foreign Service and employees of the intelligence community. This relief applies where a home is sold or stops being the taxpayer’s principal residence after Dec. 31, 2008, in connection with government orders received by the individual (or the individual’s spouse) for qualified official extended duty service. The credit is still allowable even if this happens during the year of purchase. Qualified official extended duty is any period of extended duty while serving at a place of duty at least 50 miles away from the taxpayer’s principal residence (whether inside or outside the U.S.) or while residing under government orders in government quarters. Extended duty is defined as any period of duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.
     Question and Answer
     Q. Are both spouses required to be overseas for the requisite time period in order to qualify for the 2011 extension to claim the credit?
     A. 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.

     Finally, I would consult your CPA or accountant. Because this is a tax credit, a tax professional is the only one really qualified to give you information about eligibility.

     Hope this helps!

     Reply
4. 

   rachael lee 19 January 2012 at 4:17 pm #

   Hi, Myhusband was deployed on a carrier in the Persian gulf twice for a total of 13 months between dec 2009 and july 2010 . We bought our home 2/25/11. Does sea duty count as extended duty?

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     Scott Schang 19 January 2012 at 4:56 pm #

     Rachael, it sounds to me like you meet the timeline and service criteria. Take your HUD-1 closing statement to your CPA or Accountant to determine if you meet the rest of the qualifying criteria.

     Reply

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