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11
May

Homebuyer Tax Credit Extended for Certain Military Personnel…

Some buyers can still get First-time Homebuyer Tax Credit up until April 30, 2011. The extension applies to military personnel and certain federal employees provided that they served outside the United States for at least 90 days during the period 1/1/2009-4/30/2010.

Here is an excerpt from the IRS website that explains the details:

Additionally, there are new benefits for members of the military and certain other federal employees:

* Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.

* In many cases, the credit repayment (recapture) requirement is waived for members of the uniformed services, members of the Foreign Service and employees of the intelligence community. This relief applies where a home is sold or stops being the taxpayer’s principal residence after Dec. 31, 2008, in connection with government orders received by the individual (or the individual’s spouse) for qualified official extended duty service. The credit is still allowable even if this happens during the year of purchase. Qualified official extended duty is any period of extended duty while serving at a place of duty at least 50 miles away from the taxpayer’s principal residence (whether inside or outside the U.S.) or while residing under government orders in government quarters. Extended duty is defined as any period of duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.

Question and Answer

Q. Are both spouses required to be overseas for the requisite time period in order to qualify for the 2011 extension to claim the credit?

A. Only one spouse must be overseas on official extended duty for the requisite amount of time for either spouse to be eligible for the 2011 extension of time to purchase a principal residence and claim the credit.

Our Seller Financing Program fulfills all IRS requirements as a means of purchasing for claiming the Homebuyer Tax Credit. The program also offers the following benefits:

  • No Down Payment
  • No Minimum Qualifying Criteria
  • Receive all the tax advantages/deductions for home ownership
  • Low Monthly Payment Options

To learn more about our programs, you may wish to attend our Free Homebuyer Class – “How to Buy a Home with 100% Seller Financing”.

Category : Buyers | Blog
19
Feb

Before you know it the Homebuyer Tax Credit that was extended and expanded last November will be gone again. Although the credit applies to buyers who close on the purchase by June 30, 2010, taxpayers must purchase or be locked into a contract to close before midnight on April 30, 2010.

That’s only about 8-9 weeks away which may sound like plenty of time, but it’s not. According to the 2009 National Association of Realtors® Profile of Home Buyers and Sellers:

Buyers searched a median of 12 weeks and viewed 12 homes.

So, if you want to buy a home and could use an $8,000 gift from Uncle Sam, then you need to get it in gear. Fortunately, Rent2ownMarket.com’s Seller Financing Program can help.

First, just in case you didn’t realize it, our Seller Financing Program IS a eligible means of claiming the $8,000 First-Time Homebuyer Tax Credit.

The IRS has specifically addressed this issue on their website. It outlines the buyer must meet the benefits and burdens of ownership and includes 7 test points. Here is an excerpt from the Q&A page at www.irs.gov:

Question: Can a taxpayer claim the first-time homebuyer credit if the purchase is pursuant to a seller financing arrangement (for example, a contract for deed, installment land sale contract, or long-term land contract), and the seller retains legal title to secure the taxpayer’s payment obligations?

IRS Answer:
If the taxpayer obtains the “benefits and burdens” of ownership of a residence in a seller financing arrangement, then the taxpayer can claim the credit even though the seller retains legal title. Factors that indicate that a taxpayer has the benefits and burdens of ownership include:

1)  the right of possession,
2)  the right to obtain legal title upon full payment of the purchase price,
3)  the right to construct improvements,
4)  the obligation to pay property taxes,
5)  the risk of loss,
6)  the responsibility to insure the property, and
7)  the duty to maintain the property.

Source: First-Time Homebuyer Tax Credit Questions and Answers – Basic Information at: http://www.irs.gov/newsroom/article/0,,id=206291,00.html

Of course, the home buyer must still meet the other criteria such as not having owned another principal residence at any time during the three years prior to the date of purchase.

Now that we’ve got that straight, here’s the really good news… If you are able to rent, there’s a very good possibility that you can actually own using our Seller Financing Program. So, rather that wasting you money on rent, why not get all the tax advantages, and wealth building advantages of home ownership including the First-Time Homebuyer Tax Credit? Our program has no minimum qualifying criteria. Each application is subject to the individual seller’s approval and we are happy to see most applications approved.

Category : Buyers | Blog