California Tax Credit Good Through December 31, 2010

California allows qualified new home buyers a total tax credit amount equal to either five percent of the purchase price or $10,000, whichever is less. Taxpayers must apply the total tax credit in equal amounts over three successive taxable years (maximum of $3,333 per year) beginning with the taxable year (2009 or 2010) in which the new home is purchased.”

AB 183, signed today by Gov.Arnold Schwarzenegger, allocates $200 million to the credit for homes purchased between, May 1, 2010 and applies to purchases where the transaction closes by December 31, 2010 and could extend as far out as August 1, 2011 as long as you were in contract on or before December 31, 2010. You will have to live in the home for at least two years, or you have to repay the credit to the state.
Read more: thepress.net - New 10K Homebuyer Tax Credit

The state has extended the new credit to first-time buyers of existing homes as well as buyers of new homes. The funds will be split evenly between the two groups, and buyers will have to occupy the home for at least two years. Are you in one of those two groups? Talk to your Local Realtor, Mortgage or CPA and find out. Don’t miss out!

KEY POINT – In order to qualify for this credit, you have to send some documents to the Franchise Tax Board within two weeks after the Close of Escrow. That would include a copy of the settlement statement and either a statement from the Seller that the home has never been occupied, or a statement from the Buyer that they are a first-time home buyer.

The Time To Buy Is Now!

Read more: thepress.net - New 10K Homebuyer Tax Credit

With Interest rates at a 2010 all time low and house prices creeping up, this is the time to buy!