Many of you already know about the federal tax credit, but the exciting news is about the California tax credit.  For a limited time, both first-time and repeat California home buyers will be eligible for a $10,000 tax credit along with the federal tax credit.  That gives repeat buyers a potential $16,500 combined tax credit, and first-time buyers a potential $18,000 combined tax credit.  To be eligible for both, you have to be in contract for a primary residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010.

For the federal tax credit, if you are a first-time buyer and meet the income limits, you are eligible for a maximum $8,000 tax credit.  Remember, you need to be in a binding contract by April 30, 2010 and close escrow by June 30, 2010.  For repeat home buyers, the maximum tax credit you can get is $6,500. To qualify, you need to have lived in your current home for five consecutive years out of the last eight, be in a contract to purchase a new or existing home by April 30, 2010, and close escrow by June 30, 2010.

Visit “Legal Q&As” section at www.car.org for complete details on the federal tax credits, qualifications, income levels and income phase-outs, and visit the California Franchise Tax Board for more details on the California tax credit.