NEW 2010 California Home Buyer Tax Credit

There is a small window to take advantage of both the federal tax credit and the newly signed California tax credit for a total of $18,000.

April 30th is the deadline for home buyers to take advantage of the federal tax credit. Escrow must be opened by this date and to close by June 30th for up to $6,500 to existing home buyers and $8,000 for first time home buyers. Income and other conditions apply, consult with your tax advisor.

In California, Governor Arnold Schwarzenegger just signed AB 183 for a state tax credit of the lesser of 5% of the purchase price or $10,000 in equal installments over three years.

$100 million is allocated for first time home buyers and $100 million is allocated towards purchasers of new or previously unoccupied homes. Last year's California tax credit program was so popular, it ended eight months before it was to expire.

Consultation with your tax accountant or tax attorney is highly recommended.