California Homebuyers Tax Credit

With the end of the Federal Housing Tax Credit coming to an end on April 30Th, homebuyers in California can still take advantage of the State Program. Here are the details:

The eligible taxpayer who purchases a qualified personal residence on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchases a qualified principal residence on and after Dec. 31, 2010, and closes the sale before Aug. 1, 2011, will be able to take the allowed tax credit. The credit is equal to the lesser of 5 percent of the purchase price or $10,000, in equal installments over three consecutive years. Purchasers will be required to live in the home for at least two years or forfeit -repay the credit. (As always, please consult your legal/tax professional for eligibility and actual benefit.)