Time is Running Out for Homebuyer Tax Credits

Earn up to $18,000 in Combined Tax Credits!

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. Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they are long-time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under California law.

Under the federal law slated to expire soon, a first-time homebuyer may receive up to $8,000 in tax credits, and a long-time resident may receive up to $6,500 for certain purchase contracts entered into by April 30, 2010 that close escrow by June 30, 2010. Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time homebuyer or buyer of a property that has never been occupied. The new California law applies to certain purchases that close escrow on or after May 1, 2010 [see California Rev. and Tax Code section 17059.1(a)(4)]. Other terms and restrictions apply to both tax credits.

Click the following link to access Homebuyer Tax Credit Chart 2010.