Posts Tagged ‘Homebuyer 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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Senate Extends AND Expands $8,000 Tax Credit

Thursday, November 5th, 2009

More great news for homebuyers…late Wednesday that Senate unanimously extended the $8000 first time buyer tax credit, also expanding it to include a $6500 tax credit to all buyers who are not first time home buyers. The new deadline is April 30, 2010.

The current tax credit program was scheduled to expire on November 30, 2009. Under both bills buyers need to be in the earning bracket of $125,000 or less as an individual and $225,000 or less as a couple to qualify for either credit. The new home cannot cost more than $800,000.

The expansion credit to all non-first-time home buyers also requires the move-up buyers to have lived in their current home for at least 5 years before purchasing,

The House still must approve the credit expansion but is expected to do so.

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