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    pixelgirl2089's Avatar
    pixelgirl2089 Posts: 1, Reputation: 1
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    #1

    Jan 21, 2010, 02:27 PM
    US military stationed overseas mortgage interest on foreign residence
    My husband and I were stationed in the UK in 2005. We purchased a primary home in the UK in May 2005. We sold our US home in March 2005 and a US rental property in October 2004.

    We filed for the standard mortgage interest deduction for the 3+ years we were stationed in the UK. When we were ordered back to the US last year, we were unable to sell the UK house and it was foreclosed.

    In April 2009, we purchased a home in Florida. We are now wondering if we qualify for the $8,000 home buyer's rebate and how we apply for it because technically it is showing that we have owned a home in the last three years even though it was foreign property.

    Can anyone help please?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jan 29, 2010, 10:24 AM
    The foreign property does not count when it comes to qualifying for the $8,000 Home Buyer's Credit.

    Even if it did, you would qualify for the slightly lower $6,500 credit due to the special exceptions allowed for the U.S. Military.
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