Home Buyer $18,000 Tax Credit!

Now is the time to buy a new house. The Biggest tax credits ever! This means you may be eligible for tax credits of up to $18,000! The $18,000 tax credit is a combination of up to $8,000 Federal tax credit for first time home buyer and up to $10,000 California Tax credit. Eligibility requirements and expiration dates are different for each program. Here are the break down of the Federal and Califonria Tax Credits:

$8,000 Federal Tax Credit for First Time Homebuyers

• Tax credit is $8,000 or 10% of the purchase price, whichever less.
• Your purchase first home is after January 1 and before December 1, 2009. First time buyer is defined as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
• Income qualification: the credit is based on your modified adjusted gross income (MAGI). The Federal tax credit is limited to individuals with annual incomes of $75,000 or $150,000 for joint filers. Partial credit reduces for MAGI above those limits and becomes unavailable for MAGI above $95,000 or $170,000 for int filers.

$10,000 California Tax Credit for buying New Homes in California

• Tax Credit of $10,000, 5% of purchase price or $10,000, whichever is lower
• Buyers will get $3,333 off their taxes starting in the year of purchase, and $3,333 in each of two years afterward
• Buyer must live in the home for two years to receive the credit
• The tax credit does not have to be repaid (unless buyer sells or rents out home before two years)
• There is a $100 million limit statewide on this tax credit. First come, first served

The tax credit reduces your tax billl or increase your refund, dollar to dollar. It is fully refundable, meaning that the credit will be paid out to you, even if you owne no tax or the credit is more than the tax that you owe. There is no repayment requirement associated with this incentive if you reside in your home for at least three years.

I'm here to answer all of your questions, feel free to call me at 408-835-7743 or email me alan@i2realty.com