Posts Tagged ‘California tax credit’

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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First Time Homebuyer Tax Credits

Saturday, March 14th, 2009

Good news for first time homebuyers! If you purchase a home in 2009 you will be eligible for a federal tax credit of up to $8,000. For those of you who have been waiting to buy a home this news, combined with low interest rates and some nice sales prices, makes it a great time to start shopping. Here are the requirements:

1. You must be a first time homebuyer, meaning that you have not owned a principal residence in the last three years. Current or previous ownership of vacation or rental homes does not count and will not disquallify you.

2. Income limits: $75,000 for each unmarried borrower and $150,000 for married couples.

3. If you own and occupy the home for at least three years there is no requirement to pay back the credit (unlike the previous $7500 credit, which was required to be repaid).

4. The tax credit may be claimed on your 2008 returns…yes, that’s right.

There is one more great piece of news if you live in California: California has allocated $100,000,000 in tax credits to first time home buyers who purchase NEW CONSTRUCTION homes. The homes can be single family detached or attached but must never have been occupied. If you purchase one of these properties and you are one of the first 10,000 buyers to do so, you will receive a $10,000 tax credit from the state. Here are the requirements:

1. Property must be new construction (never occupied)

2. Buyer must live in the home for two years

3. The credit is allocated over a period of three years and cannot exceed $10,000 total

4. This program works on a first-come, first-served basis…if 10,000 people buy before you, you are out of luck.

One more So, happy house hunting! There are a lot of great deals out there.

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