Tax Day 2010 has come and gone.
Nationwide, taxpayers capitalized on the homebuyer tax credit. However, qualified service members still have more than a year to take advantage of the credit that can return up to $8,000 and $6,500 to first-time and repeat homebuyers, respectively.
The extension for most taxpayers gave them until April 30, 2010 to ink a binding sales contract, and three more months to close the deal. Members of the armed forces, intelligence community and Foreign Service who are on official extended duty have until April 30, 2011 to sign a deal and July 30, 2011 to close it.
Those who qualify for the extra year will likely find appeal in the MacDill Air Force Base. The base is in the heart of Tampa Bay and only minutes from Tampa. Therefore, military members who have a VA loan backed by the Department of Veterans Affairs can still make use of the homebuyer tax credit. Also, the VA Home Loan Guaranty program caps interest rates for active-duty military members. Those terms make MacDill an even more attractive place to settle down. View homes near MacDill here.
To use the tax credit, there are general conditions:
-The maximum purchase price of a home is $800,000.
-To be considered a first-time homebuyer, you or your spouse cannot have owned a home in the last three years.
-Individuals with an annual income of at least $125,000 and married couples with an annual income of at least $250,000 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 the buyer must have occupied the residence for five of the last eight years.
If after buying a home with the help of the tax credit and having to sell it within three years of the initial purchase, the returned money amount will not be recaptured.
Read more about VA Guidelines here.