$18,000 IN COMBINED HOMEBUYER TAX CREDITS FOR A LIMITED TIME
Californians have a brief window of opportunity to receive up to $18,000 in combined federal and state homebuyer tax credits. To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive. Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they are long-time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under California law.
Under the federal law slated to soon expire, a first-time homebuyer may receive up to $8,000 in tax credits, and a long-time resident may receive up to $6,500, for certain purchase contracts entered into by April 30, 2010 that close escrow by June 30, 2010. Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time homebuyer or buyer of a property that has never been occupied. The new California law applies to certain purchases that close escrow on or after May 1, 2010 (see Cal. Rev. & Tax Code section 17059.1(a)(4)). California law generally allows buyers of never-occupied properties to reserve their credits before closing escrow, but buyers seeking to combine the federal and state tax credits will not be able to satisfy the timing requirements for such reservations (see Cal. Rev. & Tax Code section 17059.1(c)(1)(A)). Other terms and restrictions apply to both tax credits.
Source: www.car.org
Wednesday, March 31, 2010
Tuesday, March 30, 2010
CA Homebuyer Tax Credit starting May 1, 2010
Gov. Schwarzenegger’s signs Homebuyer Tax Credit legislation into law March 25, 2010
AB 183 will provide $200 million for home buyer tax credits, allocating $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes.
The credit is equal to the lesser of 5% of the purchase price or $10,000.
Which is in equal installments over 3 consecutive years.
Under AB 183, purchasers will be required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).
The eligible taxpayer who will be able to take the allowed tax credit if taxpayer:
Source: car.org
AB 183 will provide $200 million for home buyer tax credits, allocating $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes.
The credit is equal to the lesser of 5% of the purchase price or $10,000.
Which is in equal installments over 3 consecutive years.
Under AB 183, purchasers will be required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).
The eligible taxpayer who will be able to take the allowed tax credit if taxpayer:
- Purchases a qualified personal residence from May 1, 2010 to Dec. 31, 2010
- Purchases a qualified principal residence from Dec. 31, 2010 to Aug. 1, 2011 pursuant to taxpayer entering into an enforceable contract to be executed before Dec. 31, 2010
Source: car.org
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