Archive for the ‘home buyer tax credits’ Category

Buyers: Buy Now and You Could Get up to $18,000 Tax Credit!!

Wednesday, March 31st, 2010

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.

Happy hunting!

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California Homebuyer Tax Credit Extended

Thursday, March 25th, 2010

Today Governor Schwarzenegger officially signed an extension for the home buyer tax credit through December 31, 2010. The bill provides $200 million for tax credits, allocating $100 million for first time home buyers (defined as those who have not owned a home in the last 3 years) and $100 million for purchasers of new or previously unoccupied homes.

The requirements for the credit are:

1. The residence purchased must be the buyer’s primary residence;

2. The purchaser(s) must live in the home for at least two years after the sale, or will be required to forfeit the credit to the state;

3. Buyers must be at least 18 years old and unrelated to the seller of the property.

The credit will be assessed at 5 % of the purchase price or $10,000, whichever is less, and will be paid over a three year period. This is great news for home buyers and for the housing market, especially with the spring inventory just starting to arrive on the market. Happy hunting!

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