The popular Federal first time home buyer's tax credit is due to expire soon. To qualify for as much as $8000 in tax credits, buyers of principal residences must open valid escrows by the end of April and close the purchase by the end of June.
A buyer is eligible for the full credit (the lower of 10% of the purchase price or $8000) if the home being acquired is their first in the last three years. A smaller credit of up to $6500 is available to those who've owned a home five out of the last eight years. Purchase prices must be below $800,000 and buyer incomes can not exceed $250,000 per couple or $125,000 for individuals. There's a nice synopsis on the National Association of Homebuilders site. And be sure to talk with your accountant.
In more good news for home buyers Governor Schwarzenegger was expected to sign a bill authorizing credits for Californians buying their first home. The credit would apply to new or existing homes purchased between May 1, 2010 and the end of the year or who enter into a purchase contract on or before December 31, 2010 and close on the transaction by August 1, 2011. The credit is the lesser of 5% of the purchase price or $10,000. The credit will be doled out over three consecutive years in equal amounts. California requires buyers to live in their new primary residence for 2 years (the Federal requirement is 3 years). Again, talk with your tax man about the details of the new California program. Click the link for a C.A.R. side by side comparison of state and Federal plans. And talk to me about qualifying homes in Mammoth!
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