$18,000 IN COMBINED HOMEBUYER TAX CREDITS FOR A LIMITED TIME

Californians have a brief window of opportunity to receive up to $18,000 in combined federal and state homebuyer tax credits. In Marin County, to take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive. Buyers who are not first-time homebuyers 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, and they purchase properties that have never been previously occupied as provided under California law.

Under the federal law slated to soon expire, a first-time homebuyer may receive up to $8,000 in tax credits, and a long-time resident may receive up to $6,500, for certain purchase contracts entered into by April 30, 2010 that close escrow by June 30, 2010. Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time homebuyer or buyer of a property that has never been occupied. The new California law applies to certain purchases that close escrow on or after May 1, 2010 (see Cal. Rev. & Tax Code section 17059.1(a)(4)). California law generally allows buyers of never-occupied properties to reserve their credits before closing escrow, but buyers seeking to combine the federal and state tax credits will not be able to satisfy the timing requirements for such reservations (see Cal. Rev. & Tax Code section 17059.1(c)(1)(A)). Other terms and restrictions apply to both tax credits.

For more information, call me at 415.302.7787 right away. Cheers!

Don’t miss this: Take $6,500 to $8,000 off your Federal income tax

First time homebuyer? Trading up? Uncle Sam is here to help. Seriously.

You can reduce your taxes by buying a house this year. But you better hurry. First-time homebuyers who qualify can subtract up to $8,000 from their income tax, and homeowners who buy another residence can cut their taxes by up to $6,500. The Worker, Homeownership, and Business Assistance Act of 2009 has established these tax credits, which have been extended until June 30, 2010.

Generally, if you’ve lived in and owned your current residence for at least five consecutive years and you choose to buy another residence you can take up to $6,500 off your taxes. Likewise, if you haven’t owned your own home before you can deduct as much as $8,000. And if you don’t owe that much in taxes, the government will send you a check for the difference. But you need to hurry, because in order to qualify, you must be in contract by April 30, and close no later than June 30. And, yes, you can use the credit as part of your downpayment. There are maximum limits on the price of the homes, and other qualifying criteria, but most Marin homes sold today will qualify.

Call me at 415.302.7787 or mail me at jmclaughlin@fhallen.com for more information, or Go here. Cheers! Jack