Homebuyers - Combine California's $10,000 Tax Credit & $8,000 Federal Tax Credit
How to Combine California's $10,000 Tax Credit and the $8,000 Federal Tax Credit
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Combine the Federal $8,000 Tax Credit and the California $10,000 Tax Credit
1. Buy a California home as a primary residence.
2. Buy a home with a purchase price of $200,000 or more.
a. California rebate is .05% x purchase price to a maximum rebate of $10,000.
b. Federal rebate is 10% of the purchase price up to maximum rebate of $8,000.
3. Buy new construction.
a. California credit requires new construction purchase, federal does not.
4. Live in home three years or more.
a. Two years for California credit, three years for Federal credit.
5. For maximum credit, income must be $75,000 or less for single filers and $150,000 for married filers. Federal rebate phases out above these income thresholds. No limit on income for California Tax Credit.
6. Federal Tax Credit requires buyer to be a first time home buyer, generally defined as not having owned a home used as a primary residence in the past three years. (can have owned a rental or second home) No such requirement for California program.
7. Complete home purchase between January 1, 2009 and December 1, 2009.
a. California dates are March 1, 2009 to March 1, 2010.
8. The Federal credit is available the year you file or it can be split overtax years 2008 and 2009. The California credit is credited equally over three years.
Meet these requirements and you may qualify for up to
$10,000 in Federal Tax Credits and
$8,000 in California Tax Credits.
This
information is a tutorial for general informational purposes. It is not
intended to provide all the details of the programs. You are advised to see tax and legal advice to
determine how these laws will affect your personal circumstances. A real estate agent can assist you with real estate related matters. This is more
complicated than it seems on the surface.
Russ Boyd and his team professionally assist buyers and sellers in the
Peninsula comunites of the San Francisco Bay Area. They have served
clients in San Mateo, San Franicso, Santa Clara, Alameda and Contra
Costa counties. Licensed as a Real Estate Broker by the Californaia Department of Real Estate, 01264240.
Comments
Signs that the California market is improving are:
1.Foreclosures have helped lower prices and increase affordability. During the fourth quarter of 2008, 59 percent of the state’s first-time home buyers could afford to purchase an entry-level home in California
2.Sales of existing, single-family homes rose 81 percent in February.
3.The surge in sales has resulted in a drop in unsold inventory. C.A.R.’s Unsold Inventory Index stood at 6.5 months in February, compared with 15.3 months in February 2008. Six months supply is considered a normal market.
The best advice I can give any buyer is, if you find the right house in the right neighborhood at the right price, buy it. No one will see the bottom, until they are on the way up.
Hope that helps..
Regards,
Russ Boyd