As you have probably already heard, this year Congress passed legislation that grants a tax credit of up to $8,000 to first-time Los Angeles home buyers, which is great news for anyone looking to purchase a Los Angeles home.
Here are the basic details that prospective Los Angeles home buyer’s need to know in order to take advantage of this deal before it’s too late:
How do I qualify?
First-time Los Angeles home buyers who purchase homes between January 1, 2009 and December 1, 2009.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase. The qualifying “date of ownership” is the date the home was purchased. This essentially means that the date of purchase of your most recent home must have been a minimum of three years ago.
Are all Los Angeles homes eligible?
The 2009 First-Time Home Buyer Tax Credit is available for primary residences, including: single-family homes, condos, townhomes, and co-ops.
What is the amount of the credit?
The maximum allowable credit for home buyers is $8,000. The credit given to each home buyer is determined by two factors:
The price of the home—the credit is equal to 10% of the purchase price of the Los Angeles home, up to $8,000.
The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.
What happens if my income Exceeds These Limits – can I still get a credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for Los Angeles home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.
Do I need to repay the tax credit?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. If the property is sold during the three-year period, the credit will be recouped on the sale.
