Your Local and State Association of REALTORS® Provides Excellent Information For Buyers & Sellers

Reliable real estate and CUSTOMER SERVICE information is available at your local and state association of REALTORS®.

Our California Association of Realtors does a superb job of providing information for consumers and homebuyers, and so it also helps us as REALTORS® and agents.

Possible Income Tax Credits For First Time Homebuyers ~

California first time homebuyers might qualify for up to $18,000 in income tax credits for buying his or her home during 2009.

The first-time homebuyer credit up to $8,000 is under US law, and a new home income tax credit up to $10,000 is under California law.

See The Homebuyer Tax Credit Chart published by California Association of Realtors ~ http://www.car.org/legal/2009-qa/homebuyer-tax-credit-chart/

QUESTION: What constitutes a "purchase" to be eligible for the US law $8,000 income tax credit?

ANSWER: A "purchase" for purposes of this tax credit is defined as any acquisition, except as set forth in Question 15 (26 U.S.C. § 36(c)(3)). For a home that the taxpayer constructs, the purchase date is the date the taxpayer first occupies the home (26 U.S.C. § 36(c)(3)(B)).

So a PURCHASE is defined as an ACQUISITION and generally occurs when escrow closes and title to the property transfers to the buyer, and not when the underlying purchase contract is signed.

TIMING REQUIREMENT: A buyer who enters into a contract to purchase a property on November 13, 2009, but closes escrow on December 23, 2009, would not qualify for the $8,000 tax credit because the acquisition must occur before the law expires on November 30, 2009.

Source of information: California Association of Realtors.

For other real estate and customer service information, contact your local and state association of REALTORS®.

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If you want information about Southern California and Orange County homes and properties, please contact us. Thank you.

Harrison K. Long, Explore Group Properties, Coldwell Banker Previews, Irvine, CA.

www.BuyersExploreHomes.com

www.ExploreTheOC.com