Time is running out for your chance to grab a federal tax credit for buying a home in San Diego. Buyers receive $8,000 when they buy a home. To qualify, you may not have owned a home at any time during the past three years. A tax credit of $6,500 is available to home buyers who are moving up into a larger home. The tax credits, combined with the lowest home prices we have seen in years, and the lowest interest rates we’re likely to see in our lifetimes, make this a perfect storm of a buying opportunity.
The $8,000 federal tax credit will expire April 30, 2010 for first–time home buyers or those who haven’t owned a home within the last three years. You must be in a binding contract by April 30, 2010 and close by June 30, 2010 in order use the credit. The credit requires that you own the home and reside there for 36 months. For sales occurring after November 6, 2009, income limits are $125,000 for single taxpayers and $225,000 for married taxpayers filing joint returns. The tax credit is claimed on your income tax return on Form 5405.
The $6,500 tax credit for move-up and repeat buyers also expires on April 30, 2010. The law defines a move-up buyer as a person who has owned and lived in a home for at least five consecutive years of the eight years prior to the purchase date. The maximum purchase price of the home is $800,000. The same income limits apply.
With San Diego real estate prices down to their most affordable levels in years, this is an excellent time to buy!
(Disclaimer: You should always consult with your tax advisor to determine your eligibility).