One month left on $8K vet homebuyer tax credit
Published: March 30, 2011
A year ago, the U.S. real estate market saw a short-term boom as buyers ran to take advantage of an $8,000 first-time homebuyers’ tax credit before it expired. For civilians the credit is gone, but certain veterans who served overseas during 2009 and the first four months of 2010 have one more month to take advantage.
If you served overseas on “official extended duty service” for at least 90 days during a 16-month period — between Dec. 31, 2008 and May 1, 2010 — you’re still eligible for the credit, but only if you enter into a binding contract to buy a principal residence by April 30, according to the IRS website.
The credit only covers houses that sell for less than $800,000.
At least one real estate agent said she thinks the credit probably convinces people who were going to buy anyway to do so more quickly.
“I did have a push,” said Danielle Germick, a real estate agent in Fayetteville, N.C. “In the last couple of weeks, I sent five to six people a week to see if they’re preapproved. I’m noticing people are not wanting to buy just to get the $8,000. They’re looking at low interest rates and the appreciation here, and potentially qualifying for the $8,000 is a bonus.”