IMPORTANT: Contracts must be inked by April 30, 2010 and closed by June 30, 2010 in order to take advantage of the Federal and California Home Buyer Tax Credits Available. $18,000 California Home Tax Buyer Credit Ends April 30th.
Californians have a small window of opportunity to receive up to $18,000 in combined State and Federal Homebuyer Tax Credits. Californians must enter into a contract to purchase for a principal residence before May 1, 2010 and close escrow between May 1, 2010 and June 30th, 2010. Even if you are NOT a first-time home buyer you still may use the same guidelines and time frames 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 a home that has never been previously occupied.
Why $18,000? This is combining the Federal Home Buyer Tax Credit and the new California Home Buyer Tax Credit. There is a small window of opportunity where they will overlap during this time frame. Once the Federal Tax Credit expires you will still have the California Tax Credit. Please refer to our previous post for all the details on the New California Home Buyer Tax Credit.
The federal first-time homebuyer tax credit that is set to expire soon allows a first-time homebuyer to receive up to $8,000 in tax credits. Contracts must be inked by April 30, 2010 and closed by June 30, 2010. This leaves you a small window to double dip and take advantage of both the California Home Buyer Tax Credit and the Federal Home Buyer Tax Credit.
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. Other terms and restrictions apply to both tax credits so please make sure you consult a tax professional to see what would be your options and how they would be applied to your situation.