Welcome to San Diego Blog | January 3, 2010
So What is all this Hype about the Home-Buyer Tax Credit?
This is another opportunity for people, like you, to take advantage of the current state of the San Diego real estate market. It is no secret that right now is a great time to buy real estate in San Diego and the home buyer tax credit is just one more tool to help you purchase the home you’ve always dreamed of or just make an intelligent investment.
Who Qualifies for the Credit?
- First-time home buyers who purchase homes in San Diego from now until April 30, 2010. Now realize that a first time home buyer is considered to be somebody that has not owned a house for the last 3 years.
- Current home owners buying a San Diego home between now and April 30, 2010, who have used the home being sold or vacated as a primary residence for five consecutive years within the last eight. Notice, you do NOT need to sell your current home. This is a good opportunity to move up or down and receive the tax credit.
Which Properties Are Eligible?
The Home Buyer Tax Credit may be applied to primary residences in San Diego, including: high-rise condos, mid-rise condos, low-rise condos, single-family homes, townhomes, and rowhomes.
How Much Is the Tax Credit for?
- The maximum tax credit for first-time home buyers is $8,000.
- The maximum tax credit for current homeowners is $6,500.
What is the Maximum Price of the Home to qualify for the Tax Credit?
The Maximum price for the home being purchased is $800k.
Are there Income Limitations?
- Single buyers with incomes up to $125,000 and married couples with incomes up to $225,000 may qualify to receive the maximum tax credit.
If the Buyers’ Income Exceeds The Limits, Can they Still Qualify to Receive a Credit?
- Yes, some buyers may still be eligible for the credit.
- The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as their income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples do not qualify for the credit.
Can a Buyer Still Qualify If they Close Escrow After April 30, 2010?
- According to the Home Buyer Tax Credit, as long as the residential purchase agreement is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close escrow.
Will the Tax Credit Need to Be Repaid?
No! The buyer will NOT need to repay the tax credit, if they occupy the home for three years or more. However, if the property is sold during this three-year period, the full amount of the credit will be recouped at the time of the sale.