Service Members Home Ownership Tax Act of 2009
Two of the hottest topics here at My Denton County Real Estate in the past 6 months has been the discussion of the $8000 First Time Homebuyer Tax Credit and the Texas Veterans Land Board. Now a a new bill unanimously passing the House of Representatives, and soon to be up for a vote on the Senate floor allows me to right a new post directly marrying the two together.
Bill H.R. 3590 will extend the $8,000 FTHB1 Tax Credit until November 30, 2010 for members of the uniformed services, the Foreign Service, and employees of the intelligence community on official extended duty. Those meeting the underlying requirements for the credit must also have been serving overseas or have spent at least 90 days deployed outside of the country during the current calendar year.
It is expected that about 350,000 military personnel and an unknown number of federal employees may be affected once this is passed into law. This is one I feel everyone can get behind — There seems to be a lot of talk from political pundits, the news media, and even a lot of REALTORS® that believe the tax credit is just “giving money away” or “creating debt for our children and grandchildren.” I am not sure any of them realize that in order for our economy to have gotten any better money needed to be moving and changing hands.
My opinion on that is — a incentive for would be homeowners is much better than more bail-out money thrown to banks and insurance companies.
This has happen during the Summer of 2009 and the tax credit is a big part of that, this is evident when looking at the house inventory here in Denton County Texas in the first time buyers price range2 — it is very thin!
As I have said in previous articles, I am not in favor of an expansion of the tax credit, and only a short term extension, I believe till April or May of 2010 is adequate to solidify the industry a bit more. This is why I did not sign the generic form letter petition offered to real estate agents who are part of the National Association of REALTORS. It was asking for too much, and for too long, I think it was just going to keep the lobbyist hobnobbing petitioning the elected officials working more than it could keep me working.
I digressed — Regardless of what happens with tax credit being extended or expanded for everyone else; I am glad, and hopeful to help more Veterans take advantage of this incentive who may be returning home, or making Texas their new home.
Related Articles:
- The Extended First Time Home Buyer Tax Credit There is really not a whole lot more that needs to be said that my other article here has not covered. Other than the dates, some changes to the income...
- $8000 First Time Home Buyer Tax Credit Now it is my tun to break down the $8000 First Time Home Buyer Tax Credit. I must admit, when the bill was being negotiated in the Senate, before moving...
- The Move-Up or Repeat Buyer Tax Credit Also referred to as the Homeowners $6500 Tax Credit follows all the same income and qualifying date requirements as the FTHB1 tax credit. This credit is intended to be used...
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{ 5 comments… read them below or add one }
Right, I'm glad they have their share on real estate. And be able to own a home on tax credit.
If I am going into the Navy in August 10 and I purchase a home now can I still get the tax credit or would I be breaking the primary residency stipulation?? I have a family member who would be in the home while I am deployed?
Hello Rhonda,For starters thanks for serving and good luck to you. Since your question was asked under the First Time Homebuyer Tax Credit Extended for Military Personnel article I assume you plan to take advantage of the tax credit as a first time homebuyer and a veteran and not as a civilian. The answer is Yes either way but I want to stress a couple issues that may come up. If you can not or do not get a home under contract and close on THAT house by April 30, 2010 you will have to use as a veteran. If this is the case you need to make sure you get your certification from the Veterans Affairs office ASAP in order to get it claimed on your 2010 claim. This certification takes about 4-6 weeks to get even as a retired veteran, and I am just speculating but I bet even longer for newly enlisted military personnel. So I can not for sure say if you can get it in time. I would check with your recruiter and see when you would be eligible to get that vet cert before banking on getting the $8000 Tax credit.As for your 2nd question, I believe as long as that house is going to be your primary residence for the next 3 years, and you are not claiming a homestead exemption on any other home it will not matter if you are not living in it as long as you are not using it as a investment or rental property. A civilian must live in a house 6 months and 1 day a year in order to claim it as a primary residence and get a homesteaded exemption, but military service men and women obviously get other exceptions to those rules. I would actually check directly with the I.R.S. to make sure I am correct on this issue a C.P.A. may also be able to advise for sure. If you need a C.P.A. to ask drop me an email and I will get you the contact information for mine, he won't charge anything to pick his brain. Hope this helps.
If I am going into the Navy in August 10 and I purchase a home now can I still get the tax credit or would I be breaking the primary residency stipulation?? I have a family member who would be in the home while I am deployed?
Hello Rhonda,For starters thanks for serving and good luck to you. Since your question was asked under the First Time Homebuyer Tax Credit Extended for Military Personnel article I assume you plan to take advantage of the tax credit as a first time homebuyer and a veteran and not as a civilian. The answer is Yes either way but I want to stress a couple issues that may come up. If you can not or do not get a home under contract and close on THAT house by April 30, 2010 you will have to use as a veteran. If this is the case you need to make sure you get your certification from the Veterans Affairs office ASAP in order to get it claimed on your 2010 claim. This certification takes about 4-6 weeks to get even as a retired veteran, and I am just speculating but I bet even longer for newly enlisted military personnel. So I can not for sure say if you can get it in time. I would check with your recruiter and see when you would be eligible to get that vet cert before banking on getting the $8000 Tax credit.As for your 2nd question, I believe as long as that house is going to be your primary residence for the next 3 years, and you are not claiming a homestead exemption on any other home it will not matter if you are not living in it as long as you are not using it as a investment or rental property. A civilian must live in a house 6 months and 1 day a year in order to claim it as a primary residence and get a homesteaded exemption, but military service men and women obviously get other exceptions to those rules. I would actually check directly with the I.R.S. to make sure I am correct on this issue a C.P.A. may also be able to advise for sure. If you need a C.P.A. to ask drop me an email and I will get you the contact information for mine, he won't charge anything to pick his brain. Hope this helps.