Tax Credit for Military Extension

Military personel, members of the Foreign Service, and employees of the intelligence community have an extra year, through June 2011, to buy a principal residence in the U.S. and claim the federal tax credit. The deadline for entering a binding contract is April 30th 2011 with the deadline to close a purchase being June 30 2011. The extension applies to any individual (and if married the individuals spouse) who serves on qualified official extended duty service outside of the U.S. for at least 90 days during the period beginning after December 31,2008 and ending befor May 1st 2010. See www.military.com/finance/content/0,15356,205662,00.html for more information.
Pretty cool!

Time is Running Out

Only 12 more days to get into escrow to take advantage of the Federal First Time Homeowner Tax Credit of up to $8000.

New California Tax Credit

Governor Schwarzenegger signed AB 183, providing $200 million for home buyer tax credits. The bill allocates $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes.
The tax credit is equal to the lesser of 5 percent of the purchase price or $10,000, taken in equal installments over three consecutive years. Under AB 183 purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state).

The eligible taxpayer who closes escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010, or who closes escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit.
This credit will not last until December though. It is estimated that the money will run out within 3 to 4 months so if you are eligible for this credit after May 1st you need to fill out and turn in your paperwork asap.