**Homebuyer Tax Credit**
First Time Home Buyers Northern California | First Time Home Buyers Del Norte County |
Northern California Property for Sale | Property for Sale Del Norte County
California Home Buyer Tax Credit
First time home buyers are eligible for the 2010 California Home Buyer Tax Credit whether they buy an existing home or new construction. Repeat buyers are eligible for the same $10,000 credit, but only if they buy a brand new home. There is a limited amount of funds allocated for this program, so you must act quickly to take advantage of this opportunity.
These tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, these tax credits are available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010. The purchase date is defined as the date escrow closes. Taxpayers may apply for the tax credits if they have entered into a contract before May 1, 2010, as long as escrow closes on or after May 1, 2010. However, taxpayers may not request a New Home Credit reservation if they have entered into the contract before May 1, 2010.
These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.
For more information about this tax credit: http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml
There is a limited amount of funds allocated for this program, so you must act quickly to take advantage of this opportunity. Give me a call today to discuss the details.
