Tuesday, November 17, 2009

Military Extended $8000 Tax Credit

Great NEWS for our Brave Military!!!! Pass the work to any and all of our valient military personnel that you know!!


Vets Get More Time for Home Tax Credit

McClatchy-Tribune Regional News, By Andy Smith

November 11, 2009 Federal legislation extending the popular homebuyers tax credit has something extra for members of the armed forces serving overseas -- more time. Under the bill, signed into law by President Obama on Friday, the income-tax credit of up to $8,000 for first-time homebuyers was extended from its former deadline of Nov. 30. The new law says homebuyers will be eligible for the tax credit if they sign a binding sales agreement before May 1, and close on the purchase before July 1, 2010. But for members of the military on active duty outside the United States for at least 90 days -- between Jan. 1, 2009 and April 30, 2010 -- the tax break will remain in effect for an additional year.

Lt. Col. Bruce Fletcher, public affairs officer for the Rhode Island National Guard, said the new law could benefit up to 1,000 members of the Guard. "It's a great idea," he said. Staff Sgt. Joseph Bouchard, a member of the Guard who served in Iraq from July 2007 to July 2008, said he already used the first-time homebuyers tax credit when he bought a house in Cranston in October. Bouchard said he has friends who served more recently in Iraq or Afghanistan -- including some who are still there -- who are considering buying houses, and will now have an extra year to take advantage of the tax credit. "I have a friend who returned in July from Iraq, and he's thinking of buying a house ... he's going to be very excited about this," Bouchard said. Military personnel must still meet the underlying provisions of the law, which offers a tax credit of up to $8,000 for first-time homebuyers, defined as someone who had not owned a home in the previous three years. The new bill also provides a tax credit of up to $6,500 for repeat buyers who have lived in the same house for at least five of the past eight years. The tax credit cannot be used for houses costing more than $800,000.

Ron Phipps, owner of Phipps Realty in Warwick and vice president of the National Association of Realtors, said the association was strongly supportive of extending the deadline for military personnel serving overseas. Phipps said it's a matter of simple fairness -- members of the armed forces posted abroad are hardly in a position to look for houses, and shouldn't be placed at a disadvantage when it comes to receiving a tax credit. "It's an acknowledgement that our armed forces are acting in the best interests of this country, and shouldn't be penalized for their service," he said. Phipps said a good number of troops overseas could qualify as first-time homebuyers when they return. Mortgage News Daily, a news service that reports on the mortgage industry, estimates that 350,000 American military personnel could be affected by the bill. Joseph Cerrito, state commander of the Veterans of Foreign Wars, said the tax credit extension for veterans overseas is a good idea, but he would like to see the benefit expanded even further to include military serving overseas though December 2010.

The economy is turning around and will soon begin to push on interest rates. So if you are in the military or not, now is a great time to buy your first home or simply to move to the home that meets the family/your present situation.
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