You may have heard about the Federal Tax Credit for home buyers, and the renewed California First Time Buyer Tax Credit. Did you know that if you may be able to get both tax credits?
In order for a home buyer to be eligible for both the California First Time Buyer Tax Credit and the Federal home buyer tax credit, they must close escrow within a specific time period.
To be able to receive the Federal Tax Credit, you will need to have an accepted Purchase Contract no later than April 30, 2010. It must close escrow no later than June 30, 2010.
However, the California First Time Buyer Tax Credit does not start until May 1, 2010. So, in order to eligible for both the California State Tax Credit for First Time Home Buyers and the Federal Tax Credit, your escrow must close between May 1, 2010 and June 30, 2010.
The California Tax credit is for a maximum of $10,000, or 5% of the purchase price - whichever is less. The Federal Tax Credit is a maximum of $8,000, or 10% of the purchase price - whichever is less.
So, a First Time Home Buyer in California may be eligible to receive up to a maximum of $18,000 in tax credits for buying a home.
Check with your tax professional to see if it may apply to your situation.
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