The window of opportunity is closing for Californians looking to take advantage of up to $18,000 in tax credits. Here is how it breaks down:
The federal government is chipping in the follwng funds: First time home buyers can receive a tax credit of up to $8,000 IF they are in escrow by April 30, 2010 and close no later than June 30, 2010. If the home buyer is NOT a first-time buyer, they can still receive a tax credit of up to $6,500.
And the wonderful state of California is giving an incentive to ALL buyers who purchase homes that have never been lived in (a long way of saying "new homes"). Funds have been set aside for this program to offer buyers up to $10,000 in tax credit for this purchase.
So if you or someone you know is actively looking at homes to buy, make sure those deadlines are met! Always feel free to contact me for more information on this or other real estate matters.
The new California law applies to certain purchases that close escrow on or after May 1, 2010 (see Cal. Rev. & Tax Code section 17059.1(a)(4)). California law generally allows buyers of never-occupied properties to reserve their credits before closing escrow, but buyers seeking to combine the federal and state tax credits will not be able to satisfy the timing requirements for such reservations (see Cal. Rev. & Tax Code section 17059.1(c)(1)(A)). Other terms and restrictions apply to both tax credits.
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