New Home Owners May Qualify for $18,000 in Tax Credit
June 10th, 2009 by Dave HigginsNew home buyers could be eligible for up to $18,000 in tax credits under new federal and state programs.
The federal American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time homebuyers. To qualify a home must be the principal residence of the buyers and be purchased before December 1, 2009.
Buyers must not have owned a principal residence during the prior three years and must have annual income of not over $75,000 for single taxpayers and $150,000 for married taxpayers.
The tax credit is 10 percent of the home’s purchase price up to a maximum of $8,000.
California lawmakers have approved a tax credit up to $10,000 for home buyers who purchase a new home between before March 1, 2010. They set aside $100 million for the tax credit. After 10,000 new homes are purchased the credit is gone so those wishing to take advantage of this program should act quickly.
The tax credit is good for 5% of the home’s price or $10,000, whichever is less and is for new homes only. Home buyers will receive the tax credit, in equal amounts, over 3-years. The tax credit applies only if the new home is your primary residence.
Unlike the $8,000 federal tax credit, the California state tax credit is not limited to first-time home buyers.
There also are no maximum income limitations so any buyer purchasing a previously unoccupied home can qualify for the tax credit.
Better still, the $10,000 state tax credit can be used along with the $8,000 federal tax credit for home buyers. So if you’re a qualified first-time home buyer, and you purchase a new home in California that costs more than $200,000, you’ll get $18,000 in tax credits.
Please contact us to discuss these two programs at 888-627-4399 x0
FULL REPORT ON THESE CREDITS AVAILABLE BY EMAILING INFO@DAVEANDCARLA.COM
(Please put - Tax Credit Report Request - in the subject line)