Californians have a brief window of opportunity to receive up to $18,000 in combined federal and state home buyer tax credits. To take advantage of both tax credits, a first-time home buyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow before June 30, 2010. Buyers who are not first-time home buyers 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.
Under the federal law, first-time home buyers may receive up to $8000 tax credits, and a long-time resident may receive up to $6500. Additionally, under a newly enacted California law, a home buyer may receive up to $10,000 in tax credits as a first-time home buyer or buyer of a property that has never been occupied. The new California law applies to purchases that close escrow on or after May 1, 2010.
So if you qualify and close your escrow between May 1st and June 30th, you may qualify for both tax credits. Check with your qualified tax representative to see if you qualify. If you do, it’s an excellent time to think about buying a home in Cardiff, Encinitas, Carlsbad, Vista, or Oceanside.