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First-Time Home Buyer Tax Credit
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First-Time Home Buyer Tax Credit Extension
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What are the Main Terms of the Tax Credit?
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June 30, 2010. The U.S. Senate passed the Hombuyer Assistance and Improvement Act extending the allowed closing deadline to September 30, 2010 for Carlsbad buyers who have already qualified for the first time home buyer tax credit. There was concern that the backlog created by the popularity of the program and the time it takes for banks to deal with transactions such as short sales would have left many San Diego North County home owners unable to claim the credit. Your Carlsbad home still had to have been in escrow by April 30, 2010. That didn't change.
Check out Homebuyer Tax Credit Chart 2010 for Federal and California info. With only about a month to go before you have to have your Carlsbad home for sale in escrow (April 30, 2010), your had better get started. Here are some things that you need to be doing. You need to get to know the Carlsbad home market fast. This website is a great place to start because it lets you search for homes in many different ways. You can use Carlsbad Homes Map Search: a Quick Homes MLS Search that provides a Carlsbad homes map search using "bing."
If you haven't already started, you need to get your financing in order immediately. Gary can help you with that and suggest Home Services Lending, a Wells Fargo affilliate. That will also verify how much you can borrow and what price range you need to be searching for your Carlsbad home. The lender will give you a prequalification letter you need before you can make any offers.
Make lots of offers if you want to get a Carlsbad home it time to use the tax credit. However, getting the right home should always be the primary goal. Stay away from short sales, they will take to long to complete if you are going for the credit. Find out more information on the new (Starts May1, 2010) California Homebuyer Tax Credit, contact Gary Harmon, your North County Realtor.
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- San Diego North County Homes must be purchased through April 30,2010 and close escrow by June 30, 2010. To put that another way the purchase of your Carlsbad home you must buy berore May 1 and close before July 1. Although the first-time tax credit expires for many San Diego North County buyers, there is an extension for some. This special extension rule applies to members of the U. S. Armed Forces who are serving on extended duty. These members receive an extra year to buy a principal residence and qualify for the homebuyer tax credit. They must be in contract by April 30, 2011 and close on the purchase by June 30, 2011.
- North County homes must be purchased by a First-Time Home Buyer.
- The maximum allowed Carlsbad home purchase price is now $800,000.
- The maximum credit is $8,000 or 10% of the home purchase, whichever is less.
- Single taxpayers may now earn up to $125,000 and married taxpayers filing jointly may earn up to $225,000.
- North county buyers who are claimed as dependents by other taxpayers or who are under age 18 are not qualified for the tax credit program.
- Homes must be used as your primary residence. The IRS defines a principal residence as one that you live in most of the time. Your main Carlsbad home.
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San Diego North County Homes First-Time Home Buyer Defined
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The First-Time Home Buyer Tax Credit Extension is for first-time buyers of San Diego North County homes (either spouse if filing jointly) who have NOT owned a principle residence during the three-year period prior to the purchase. Ownership of vacation property or rental property does not disqualify home buyers from this program.
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New Home Buyer Tax Credit
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There is a new credit of up to $6,500 for some existing homeowners. This reduced credit is available for existing homeowners who have been in their current Carlsbad home for a consecutive 5 year period. To benefit from this credit, the existing homeowner need not sale their current North County property. They could choose to keep it and rent it out. They must buy a new property and make it their primary residence within the time frames.
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Read Heated First-Time Home Buyer Market. For great detailed information see the government site Federal Housing Tax Credit and First-Time Home Buyer C.A.R. Affordability Fund. Please consult your tax advisor / accountant to determine whether you are eligible for this tax credit before making any decisions or changes to your tax status. Extending and expanding this tax credit is expected to cost the government about $10.8 billion in lost revenue. This first-time home buyer tax credit extension is expected to benefit both those buying Carlsbad homes and selling North County home as well as other North County real estate related businesses.
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| The main purpose of the first-time home buyer tax credit is to stimulate a slow housing market and to help fight recession in the US and here in San Diego North County. There is no question that it has had a positive impact. Over all in the US, NAR reported that home sales were up in November 2009 by over 44% from the previous year. Without the tax credit the housing depression would not doubt be worse. The state of California has realized how important that the tax credit is to its fragile economy. Through leadership of the governor, Arnold Schwarzenegger and the California Association of Realtors, the state has passed AB 183, a new first-time home buyer tax credit just for Californai homes. |
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