The lucky 2009 first time home buyers take a piece of the pie. It’s 8/16/09 and to take advantage of this $8,000 free credit, buyers better hurry because time is running out. To claim the credit a buyer must close escrow on or before 12/1/09. Remember the average escrow period is 30 day’s from the accepted offer, If a buyer wants a piece of the pie I would hope they are actively searching for their dream home. If you would like to see what homes are available in our Laguna cities such as Laguna Niguel, Laguna Beach and Laguna Hills Just let us know and you will have a list in no time. We also service all of south Orange County from Newport Beach to San Clemente.
This is what a buyer needs to know about the tax credit.
First time home buyers only.
To qualify a buyer must not have owned a home in the past 3 years from the date of close of escrow.
Tax credit maximum.
The tax credit will be 10 percent of the purchase price up to a maximum of $8,000. If you are buying a home in orange county California you will find it hard not to get the full $8,000.
You must close Escrow in 2009 or you miss out.
The $8,000 tax credit was created to stimulate the housing market in 2009. To qualify you must buy and close Escrow between 1/1/2009 and 12/1/2009
You don’t have to pay the tax credit back.
Unlike the previous tax credit, you do not have to pay it back. However you may be required to pay a portion back if you don’t live in the home as your principal residence for at least 3 years from the purchase date.
The 2009 tax credit is refundable.
The home buyer can claim the credit even if they have little or know income tax to offset.
There is a income restriction.
A single taxpayer can claim the full tax credit as long as their income is under $75,000. A married couple can claim the full tax credit if their income is under 150,000. (Partial tax credits may be claimed for buyers with incomes over the income restriction limits).
As always We are here to help and answer your questions.
Call Brett Dalbeth