$8,000 First Time Home Buyer tax Credit ending on April 30^th

However, the “governater” doesn’t want the fun to stop yet, so he is introducing another credit just for California. Actually, if you time it right, you can take advantage of both and make it an $18k tax credit.

$18,000 IN COMBINED HOMEBUYER TAX CREDITS FOR A LIMITED TIME

Californians have a brief window of opportunity to receive up to $18,000 in combined federal and state homebuyer tax credits. To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive.

Credit #1:

FEDERAL-First-Time Home Buyer Credit Ending April 30, 2010; Some Current Homeowners Now Also Qualify

To take advantage of this you MUST go into contract by April 30, 2010 and close before June 30, 2010.

The Worker, Home Ownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.

The maximum credit amount remains at $8,000 for a first-time home buyer –– that is, a buyer who has not owned a primary residence during the three years up to the date of purchase.

But the new law also provides a “long-time resident” credit of up to $6,500 to others who do not qualify as “first-time home buyers.” To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.

For all qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 tax returns.

For info click here: http://www.irs.gov/newsroom/article/0,,id=215791,00.html

Credit #2:

CALIFORNIA-Important Update (03/30/10): The 2010 First-Time Buyer Credit begins May 1, 2010.

If you don’t make it in time Gov. Arnold Schwarzenegger just released a new CA tax credit.

Under the provisions, the bill:

• Provides a 5% tax credit, up to a $10,000 tax credit payable over 3 years
• New-home buyers have until Dec. 31 to sign a purchase contract, then must close escrow by Aug. 16, 2011.
• Requires buyers to live in the home for at least two years.
• Sets no income limitations on buyers.
• Requires buyers to repay the tax if they fail to live in the home for two years or fail to close escrow on a new home by Aug. 16, 2011.
• Funds are first come first serve

For more info click here: http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml