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Old 04-16-2009, 11:02 PM   #2
teridbruse

Join Date
Oct 2005
Posts
415
Senior Member
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For assistance related to PCS moves and base closure and realignment, it applies to those who bought their primary residence before July 1, 2006, and sold it or will sell it between that date and Sept. 30, 2012.

The law authorizes the Defense Department to help homeowners in one of several ways, including buying the house or reimbursing for certain losses when the service member sells the house or suffers a foreclosure.

Applications for the program can be found online.

Meanwhile, if you receive benefits under this program, they will be taxable — anything you get that is over 95 percent of the current fair market value when you received PCS orders.

For those who are “upside down” on their mortgages, this could take a bite. For example, say your mortgage balance is $300,000, and you can sell your home for only $200,000. If the Defense Department provides $100,000 to pay off the mortgage, you would have to pay taxes on $110,000.

Talk to the tax preparation experts on your installation for advice on what you can do this year to mitigate the impact.[/I]


Article: http://www.militarytimes.com/money/f...pper_031809w2/
Legal Assistance: http://legalassistance.law.af.mil/content/locator.php
THis is great news for me... but I didn't know I was going to ahve to pay taxes on the $200K it is going to take to get me out of my house. But then $20K in taxes is still better than being $200K upsidedown on the house. Guess I better start looking for deductions for this year... lol
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