U.S. Military first-time buyers receive up to $8,000 and long-time homeowners can receive up to $6,500

DEADLINE: April 30, 2011 by midnight

Who qualifies for the military homebuyer tax credit extension?

Members of the uniformed services, members of the Foreign Service and employees of the intelligence community who served on qualified official extended duty service outside the U.S. for at least 90 days during the period beginning after Dec. 31, 2008 and ending before May 1, 2010.

How much is the credit?

First-time buyers receive up to 10 percent of the cost of the home up to a maximum credit of $8,000 (or $4,000 for a married individual filing separately). Long-time homeowners receieve 10 percent of the purchase price up to $6,500 (or $3,250 for a married individual filing separately).

What is the new deadline for using the tax credit?

Eligible homebuyers must enter into a binding contract to buy a principal residence on or before April 30, 2011. The taxpayer then has until June 30, 2011 to close on the purchase.

Which properties are eligible?

Any single-family home (including condos, co-ops, townhouses) that will be used as a taxpayer’s primary residence. This does not include vacation property. The purchase price of the home may not exceed $800,000.

Do both spouses need to be overseas to qualify for the extension?

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.

Contact your REALTOR® or visit www.YourIllinoisHome.com for more details. If you have specific questions or need further assistance, please contact a tax professional or the Internal Revenue Service at 800-829-1040

Source: YourIllinoisHome.com, sponsored by the Illinois Association of Realtors®

Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com