The Federal Tax Credit for home buyers ended May 30, 2010.
The California Franchise Tax Board is no longer accepting applications for the first
time home buyer Tax Credit.
However, the New Home Credit for purchasers of new construction homes is
still available, as of September 15, 2010. Here are the details.
- Tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for
a qualified principal residence. A home that is purchased for $200,000 or more
would qualify a buyer for the full amount of $10,000.
- The tax credit will be done over a three year period, through the filing of state income
taxes. Each year the applicant may be eligible for up to $3,333.
- Previous home owners may qualify for a New Home Credit.
- People who have not owned a home in the past 3 years may qualify for a First-Time
Buyer Credit.
- A total of $100,000,000 was available for the New Home Credit. When these funds
are gone, the Tax Credits will be gone.
- You must live in the home for at least two years in order to keep the tax credit.
- Credits are available for taxpayers who purchase a qualified principal residence
before August 1, 2011, pursuant to an enforceable contract executed on or before
December 31, 2010.
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