A Window of Opportunity
April 5, 2010
A window of opportunity has opened for some prospective home buyers in the state of California.
A newly enacted law as set aside $200 million dollars to be used as tax credits for home buyers who fit certain criteria. These home buyers can either be first time home buyers ($100 million allocated) or purchasers of new construction (homes never previously occupied - $100 million). There are income limitations and purchase price limitations. There are also specific dates between which the purchase must occur. Interestingly a purchase date is defined as the date the transfer of title occurs, not the date that the purchase contract is signed by the buyers and sellers. Thus the closing must occur after May 1 , 2010 and prior to December 31, 2010 in order to be eligible for this tax credit which will be spread over a three year period.
The window of opportunity comes as a result of the federal tax credit of $8,000 which has been in effect since November 2009. This program ends June 30 2010, but the purchase must have occurred prior to April 30, 2010 (or May 1, 2010, depending on how you look at the dates). For this federal tax credit, you must either have closed escrow on the property or have proof that a binding purchase contract is in place by April 30, 2010 and transfer of title must occur before June 30 1010.
Hence the window of opportunity.
For the next approximately sixty days, first time home buyers could be eligible for both credits
as These credits overlap until June 30, 2010. The federal tax credit did not have a dollar cap on the allocations, but the California tax credit does. When the $100 million is allocated, the program is over.
If you are planning to purchase a home, this $18,000 may be very helpful.
As an aside, the federal tax credit for repeat buyers who have owned a property for the past eight years and lived in it as a primary residence who meet the income criteria and the window for the purchase and who purchase a home that was never previously occupied, may also be eligible for both credits.
Contact your real estate agent and be serious about purchasing now.
A window of opportunity has opened for some prospective home buyers in the state of California.
A newly enacted law as set aside $200 million dollars to be used as tax credits for home buyers who fit certain criteria. These home buyers can either be first time home buyers ($100 million allocated) or purchasers of new construction (homes never previously occupied - $100 million). There are income limitations and purchase price limitations. There are also specific dates between which the purchase must occur. Interestingly a purchase date is defined as the date the transfer of title occurs, not the date that the purchase contract is signed by the buyers and sellers. Thus the closing must occur after May 1 , 2010 and prior to December 31, 2010 in order to be eligible for this tax credit which will be spread over a three year period.
The window of opportunity comes as a result of the federal tax credit of $8,000 which has been in effect since November 2009. This program ends June 30 2010, but the purchase must have occurred prior to April 30, 2010 (or May 1, 2010, depending on how you look at the dates). For this federal tax credit, you must either have closed escrow on the property or have proof that a binding purchase contract is in place by April 30, 2010 and transfer of title must occur before June 30 1010.
Hence the window of opportunity.
For the next approximately sixty days, first time home buyers could be eligible for both credits
as These credits overlap until June 30, 2010. The federal tax credit did not have a dollar cap on the allocations, but the California tax credit does. When the $100 million is allocated, the program is over.
If you are planning to purchase a home, this $18,000 may be very helpful.
As an aside, the federal tax credit for repeat buyers who have owned a property for the past eight years and lived in it as a primary residence who meet the income criteria and the window for the purchase and who purchase a home that was never previously occupied, may also be eligible for both credits.
Contact your real estate agent and be serious about purchasing now.
posted by shirley harry at 8:10 AM
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