Federal Tax Credit Ends April 30th
Posted by carolyn in Davis Real Estate Market on April 02nd, 2010
The Federal tax credit for both first time homebuyers and qualified long-time existing home owner/buyers on April 30th. To qualify for the credit, buyers must be in contract before that April deadline and close escrow prior to June 30th. The extension of the tax credit has motivated a lot of buyers to act while the government is giving away free money.
Starting May 1st, California will have a $10,000 tax credit to qualified first time homebuyers however, the difference will be that it is not an automatic credit, home buyers will have to apply and reserve the credit and it will not be paid back in one lump sum but over a three year period.
The California credit is an expansion of a program last year that was only for first time homebuyers of newly constructed homes, this year there is $100 million in tax credits set aside for new and another $100 million for existing homes. The program ran out of money within a few months last year so while this credit runs until December, 2010 it is likely to run out of funds before the deadline.
Your personal tax accountant is the best source of information to see if you qualify for either the Federal or State Tax credits.
1 Comment »
RSS feed for comments on this post. TrackBack URL
Wow! I wish I were one of the lucky 10,000 people able to collect on a $10,000 tax credit, even if it is spread across a three-year period. I envy anyone in CA who qualifies for this fantastic housing stimulus credit!
Comment by Jolenta — April 6, 2010 @ 4:42 AM