If you are confused about the Federal Tax Credit and how it applies to you, this is an excellent overview.
Also, there is the possibilty of a California State Tax Credit bill being passed which will offer a credit of $3,333 per year for three years to subsidize homebuyers.
Federal Tax Credit Extended - What You as a Buyer Need to Know
Tax Credits are available for both first time home buyers as well as those purchasing primary residences who have owned a home for 5 of the last 10 years. Condos, townhomes and single family homes apply and the maximum purchase price is $800,000. Two income caps have been set:
- If an individual makes $125,000 or higher, they will not be eligible.
- If a couple's joint income is $225,000 or higher, they will not be eligible.
The federal tax credit application form can be found here (IRS form 5405).
Here's a quick video version of the new federal tax credit explanation as well. (Scroll to the bottom of the web page to view the video).
This new bill is going to cost $10 billion just for the home buyer tax credit. Here's a more detailed version of the explanation of the extended $8,000 and $6,500 federal tax credit:
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Hey Lady! Thank YOU for the re-blog! I'm truly honored! I do love this guy's explanation and it would be so wonderful if CA offeres the additional incentive. That's a heck of a deal for homebuyers there!
Have a great week...
Debe, thanks. I think the California addition is a little overkill, but I wouldn't turn it away.