Thanks to an a combination of state and federal laws, you could be eligible for up to $18,000 in tax credits if you are a first time homebuyer, or up to $16,500 if you are a non-first time buyer and meet the requirements. But this is only available for a limited time, so if you are in the market to purchase real estate there has never been a better time. Here are the basic requirements for the tax credit programs:
First time home buyers–dual credits:
1. Purchase must be of principal place of residence
2. Escrow must close between May 1, 2010 and June 30, 2010
3. Up to $10,000 tax credit to first time homebuyers under new California law and up to $8,000 credit under federal law
Purchasers of New Homes (Never Been Occupied):
1. Property must be principal place of residence
2. Can be first time or non-first time buyer
3. Up to $10,000 under California law
New California Law:
1. Applies to purchases that close on or after May 1, 2010
2. Must be first time homebuyer or purchaser of new construction (never been occupied home)
3. Up to $10,000 tax credit
4. Must remain in home at least 2 years post sale or pay back money
To make sure you meet all the eligibility requirements, purchase price restrictions, other restrictions and time frames, please visit http://www.car.org/legal/legal-questions-answers/2010-qa/homebuyer-tax-credit-2010/ for a tax credit chart detailing both the Federal and state initiatives.
You can visit the following sites: IRS– http://www.irs.gov/newsroom/article/0,,id=204671,00.html.
California Franchise Tax Board: http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml.