Surprisingly, many buyers still don’t know that both the federal and CA state governments are offering huge tax incentives in 2009 for homebuyers. These are not tax deductions, but rather tax CREDITS. That means a dollar for dollar savings on your 2009 tax bill. Here is a summary of what is available:
FEDERAL tax credit
– 10% of purchase price up to $8,000
– 1st time buyers only (no ownership in last 3 years)
– max income limits apply (max AGI of 75K single/150K couple with phase-outs up to 95K/160K)
– must buy before Nov. 30, 2009
CALIFORNIA tax credit
– 5% of purchase price up to $10,000
– no need to be 1st time buyer
– no income limits
– new construction property only
– must buy before Feb. 20, 2010 OR before the allocated funds of 100M run out
For more details on these fantastic tax saving opportunites please download the attached chart: 2009 Homebuyer Tax Credit Chart