Illinois Association of Realtors News Release
Contact: Mary Schaefer 217-529-2600
FOR IMMEDIATE RELEASE: February 16, 2011
Homebuyer Tax Credit Extension forU.S. Service Members
ExpiresApril 30
Springfield, Ill. – U.Smilitary personnel and certain other federal employees serving overseas mustact quickly if they plan to take advantage of the federal tax credit of up to$8,000 for first-time buyers and $6,500 for long-time homeowners that expireson April 30, 2011. Members of the U.S. military, foreign serviceandintelligence communities were given an extra year to claim the tax credit,which expired in 2010 for all other homebuyers.
“The tax credit has been agreat incentive for new and repeat homebuyers and U.S. service members have buta short window to claim it before it is gone. At a time when affordable homeprices have never been better, U.S. service members can get even morehomebuying power with a sizable tax credit that they don’t have to pay back,”said REALTOR® Sheryl Grider Whitehurst, ABR,CRB,GRI, president of the IllinoisAssociation of REALTORS® and the Development and Operations Coordinator forTraders Realty in Peoria.
According to the InternalRevenue Service, details of the tax credit include:
- Whoqualifies? Members of the uniformed services, members of the Foreign Serviceand employees of the intelligence community who served on qualified officialextended duty service outside the U.S. for at least 90 days during the periodbeginning after Dec. 31, 2008 and ending before May 1, 2010.
-First-time buyers receive up to 10 percent of the cost of the home up to amaximum credit of $8,000 (or $4,000 for a married individual filingseparately). Long-time homeowners receive 10 percent of the purchase price upto $6,500 (or $3,250 for a married individual filing separately).
-Eligible homebuyers must enter into a binding contract to buy a principalresidence on or before April 30, 2011. The taxpayer has until June 30, 2011 toclose on the purchase.
-Eligible properties include single-family homes (including condos, co-ops andtownhouses) that will be used as the taxpayer’s primary residence. Vacationhomes and homes with a purchase price exceeding $800,000 do not qualify for thetax credit.
- Onlyone spouse must be overseas on official extended duty for the requisite amountof time for either spouse to be eligible for the 2011 extension of time topurchase a principal residence and claim the credit.
Consult with your REALTOR® orvisit www.YourIllinoisHome.com,a consumer site developed by the Illinois Association of REALTORS® for moredetails. For specific questions or further assistance, contact a taxprofessional or the Internal Revenue Service at 800-829-1040.