If you’re in the market to buy your first home, or if you qualify as a “first time home buyer,” or if you’re buying a “new” home…READ THIS! If you’re doing one of the above, chances are you’re well aware of the $10,000 California State tax credit – the one that gives you $10K over three years. However, what you may not know, is that there’s some fine print – you must FILE FOR THE CREDIT IN 14 DAYS upon closing escrow.
Unlike the Federal $8000 tax credit, the California State tax credit must be filed within 14 days of closing escrow and NOT when you normally would file your taxes. Additionally, those of you who want to take advantage of this must have closed escrow no sooner than May 1st, 2010(but if you’re reading this, I assume you just closed, or are about to close…so keep reading). The California Tax Credit is only good until the $100 million runs out…so hurry up(same with the New Home Buyer credit…it has a $100 M fund).
In order to qualify for the New Home and/or the First Time Home Buyer Tax Credit, the following must apply:
Again, you must file for either credit within 14 days upon closing escrow. Buyers are also allowed to send in a tax credit reservation, during escrow if they want to have a better chance of getting some of the State’s money. Please click here to read the State’s instructions and to make sure you file correctly. Applicants must fill out Form 3459–A and fax it in to 916.855.5577, along the the buyer’s final HUD-1 statement.
If you have any other questions, please read the FAQ form, contact your realtor, or your accountant. And if you need help buying or selling a house, please give me a call.
Denny Oh 858–243–2092 [email protected]