Tax Credit and Military Deployment

See below, directly from the IRS on a question having to do with Military deployment and the $8,000 first-time homebuyer tax credit:

Q. Taxpayer is in the military and will close on home July 2009.  Taxpayer meets all of the qualifications to claim the credit.  He has received orders to deploy overseas for possibly 18 months. 

1.  If a member of the military gets deployed and must give up their home in the first 3 years, do they have to pay back the credit? 

2. Can he rent his home until he returns (to assist with mortgage payment) if they intend to reside in it after their deployment overseas?

3. If he can not rent it, can he arrange for a "caretaker" to live there until his return?

A.

1.  Section 36 does not provide any recapture exceptions for military personnel who get deployed and sell their homes within 36 months from the purchase date.  If the taxpayer does not sell the residence, then the military deployment may be considered a "temporary absence" and the home may still be the taxpayer's principal residence if the taxpayer intends to return to the residence after the deployment.  

2.  If the taxpayer intends to return to the residence after the deployment, the residence may still be the taxpayer's principal residence even if the taxpayer rents out the residence.  

3.  The taxpayer may arrange for a "caretaker" or "house-sitter" during a temporary absence.

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