Tagged: service member

Military Members Looking to Purchase a Home Can Now Take Advantage of First-Time Homebuyers Tax Credit

If you are a military member who is looking into purchasing a home for the first time you may be curious to know if you qualify for the first time homebuyer tax credit that everyone has been talking about this year.  Many service members that purchased a home over the past year using this tax credit have quite possibly had the question run through their head “Will I have to pay back the first time homebuyers tax credit if I have to get re-stationed?” or “I just came back from a deployment – do I have enough time to purchase a house before November 30 when the tax credit deadline is?”.  Thanks to an extension and revision of the bill these questions have now been answered.

The Service Members Home Ownership Act of 2009 was presented not even a month ago for approval and last week Congress approved both the extension of the first time homebuyers tax credit for an additional year for service members who were deployed outside of the U.S. for over 90 days in 2008 and it would also allow service members to not have to pay the $8,000 credit back if they have to get re-stationed before the initial three years of owning their home.

Many military personnel who purchase homes usually either have to sell their homes or rent them out if they are getting changing locations and are no longer going to be able to live in the home.  This was causing a lot of military members to not want to purchase a home and take advantage of the first time home buyers tax credit because more than likely they would have to relocate within the first three years of owning the home and the chances that the new home could remain their primary residence is usually slim.  With the Service Members Home Ownership Act of 2009 military members no longer have to worry about these provisions in the First Time Homebuyers Credit.

Robert Dietz, the director of tax issues for the National Association of Home Builders, predicts that the approval of the Service Members Home Ownership Act of 2009 will probably result in an additional 10,000 home sales.  While he says this won’t have an impacting effect on the national level of the housing market it will have an effect on the local communities, especially the communities that are near Army, Marine, Air Force, Navy or Coast Guard bases.

No matter if you are in the military or if you are not there are certain tips you will want to use when purchasing a house whether it is in New York, New Jersey or anywhere in the U.S.  To get more information on what steps and precautions you should take when purchasing a home get a no cost, no obligation copy of “5 Myths that Can Ruin the Purchase of Your Home” by Steven T. Decker.  This book is being offered free to residents and those who are looking to become residents of New York or New Jersey.

First Time Homebuyers Tax Credit Bill for Service Members | Military Personnel Purchasing a Home in New York and New Jersey

Late last week the House Way and Means Committee unveiled the a bipartisan bill that is currently being taken into consideration by the House of Representitives.

The Service Members Home Ownership Act of 2009 would correct a problem that was previously occuring for military members with the First-Time Homebuyers Tax Credit.  Many military members were not taking part in purchasing their first home and taking advantage of the $8,000 first time homebuyers credit because of the concern that they would have to pay back the money they receive from the tax credit if they get transferred to a different station before they have owned and resided in the home for 36 months.

The first time homebuyers tax credit has a clause in it that prevents first time homeowners from selling their house or renting out their house before the initial 36 months has passed.  If you choose to move out prior to the 36-months or are not using the home as your primary residence you must pay back any tax credit that you received from the program.  The Service Members Home Ownership Act of 2009 would change the requirements for military personnel.

The main benefits that service members will see if the bill is passed are:

  •  Certain service members would be exempt from paying taxes if they are forced to sell their home at a depressed price. Among those eligible for the tax exemption would be wounded service members and service members who had to sell their home because they were permanately assigned to a new duty station.
  • Service members and certain federal workers who buy a home before December 1, 2009 will not have to repay the $8,000 tax credit if they sell their home or stop using it as their primary residence within the first three years if they are forced to sell or rent out their house because of government orders.
  • Service members, foreign service officers and members of the intelligence community who were deployed outside of the U.S. for 90 days or more between January 1 and December 1, 2009 will have be able to close on a house after December 1, 2009 and still be able to take advantage of the first time homebuyers tax credit.

This bill  is passing throught the Senate quickly and will possibly be signed and put into place within the next two weeks.

If you are a military member purchasing a home in New York or New Jersey and need a real estate lawyer in Staten Island, New York contact Steven T. Decker at 718.979.4300.