There are two types of credits which will be available. The New Home Credit is for buyers of never occupied new construction. The First-Time Buyer Credit is for first time homebuyers who have not owned a primary residence in the last three years. Here are the highlights:
New Home Credit
· Application for the tax credit must be received ON or AFTER May 1, 2010.
· This credit can be reserved on or after May 1, 2010 by submitting an executed purchase contract and a reservation form.
· The purchase contract must be entered into prior to December 31, 2010 and must close by August 1, 2010.
First-Time Buyer Credit
· Application for the tax credit must be received ON or AFTER May 1, 2010.
· The application must be submitted AFTER escrow closes.
Here is the link to the State of California Franchise Tax Board where the bulletin is posted and where they will continue to post more details on the tax credit. http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml
Please let me know if you have any questions or need help with any transaction!
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