Two days and counting until Tax Day! That means prospective homeowners better close the deal if they want to take advantage of the tax credit, which could return up to $8,000 to first-time home buyers and $6,500 to repeat buyers. Thankfully, qualified service members from the Armed Forces, intelligence community or The Foreign Service have an extra year to put this tax credit to use.
Homebuyers that meet one of those criteria and are on official extended duty, deadlines for the tax credit are extended. They have until April 30, 2011 to sign a binding sales contract that is closed by July 30, 2011.
Those considering home buying should seriously consider Wisconsin. Thanks to its mix of rural and urban areas, the state of Wisconsin has an attractive range of housing markets from which to choose. Given its wide range of industries, Wisconsin welcomes service members regardless of their labor skills. Despite which deadlines apply, the tax credit has general requirements:
A home's maximum purchase price is $800,000.
You or your spouse cannot have owned a home in the last three years, to be considered a first-time homebuyer.
Individuals and married couples with an annual income of at least $125,000 or $250,000 respectively cannot qualify for the tax credit.
Those who are not purchasing their first home can qualify for up to $6,500 in return. All other requirements are the same, but you must have occupied your residence for five of the last eight years.
If official extended duty causes qualified service members to sell or move from a tax credit home within three years of purchasing it, they are exempt from the recapture rule. Loans insured by the Department of Veteran Affairs can still put the tax credit it to use, too.
Find out more about obtaining your VA loan Certificate of Eligibility here.
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Jolenta Averill, Principal
Lake & City Homes Realty