Buyers of San Diego homes and condominiums now have the opportunity to receive as much as $18,000 in Federal and California State Tax credits.
The State of California is instituting a new housing stimulus bill granting $10,000 in state income tax credits to home buyers known as AB 183. This bill allocates $200 million dollars for additional tax credits for buyers of homes in California, $100 million for first tme buyers of existing homes and $100 million for any one who buys a new unoccupied home. This bill applies to escrow closings after May 1, 2010. This California State tax credit is limited to the lesser 5% of the purchase price of the qualifying home and must be taken in equal tax credits over over 3 years. This $10,000. state tax credit can be combined with the $8,000. Federal Tax Credit but combining them can be tricky and the timing must be precise.
To be eligible for the California tax credits, first time buyers (taxpayers)must be at least 18 years old and unrelated to the seller. First time buyers are defined as those who have not owned a home in the past three years. Buyers of new, unoccupied homes do not need to be first time buyers.
Buyers must live in the home they buy (principle residence) under the rules of AB 183. They must live in the home for at least 2 years or may be requred to repay the tax credit to the State of California.
This California State tax credit is limited to the lesser 5% of the purchase price of the qualifying home or $10,000. and must be taken in equal tax credits over 3 years.
To be eligible for the California State tax credit buyers who must close escrow between May 1, 2010 and December 31, 2010. Buyers in an enforcable contract by December 31, 2010 have until August 1, 2011 to close escrow. To be eligible for the Federal Tax Credit, purchasers must be in a non contingent escrow by April 30, 2010 and close escrow by June 30, 2010.
For the California State Tax Credit buyers the cannot close escrow on their new home before May 1, 2010. There is only a short window of time, May 1 2010 to June 30, 2010 to close escrow and be eligible for combining both tax credits.
Buyers must act quickly because the funds allocated to the 2010 California Tax Credit are expected to be rapidly depleted. The 2009 California State home buyer Tax Credit allocation was used up in only four months.
To purchase a home using these tax credits or for more information on these Federal and California State Tax Credits contact Claude Braunstein or phone us at 858 271-7770. A Coldwell Banker affiliate with over 30 years of experience, Claude and his team will help you find the right home at the right price and help you to take advantage of the home purchase tax credits.