South Orange County Blog from Bob Phillips

Some first time California home buyers seem poised to get $18,000 in tax credits.

Posted in Down payment assistance, home affordability, Real estate, taxes by southorangecounty on March 28, 2010

There is an interesting wrinkle with the new bill just signed by Governor Schwarzenegger, regarding tax credits for California home buyers – state bill AB 183.

Here is some language from that bill: “Requires buyers to close escrow between May 1 and Dec. 31 to qualify.” ( For an up to $10,000. tax credit.)

The interesting part of that is this: The Federal first time homebuyer tax credit of up to $8000. clearly states that “The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.” ( From the Government’s Making Home Affordable website: http://www.federalhousingtaxcredit.com/glance.php )

So, if I read that correctly – and remember, I am NOT a qualified tax preparer, or attorney – that seems to suggest that if you are IN escrow before May 1st, 2010, and close escrow prior to July 1st, 2010, you might qualify to receive BOTH tax credits.

If you happen to be one of those fortunate California home buyers, and you seem to qualify, you should definitely look into this potential windfall.

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