Buyers who close escrow early in the year are likely to have greater benefit from tax deductions for 2010. In the current market, buyers are seeing opportunity that has not been theirs for several years. This slide from California Association of Realtors shows the total tax liability difference over 5 years between renters and buyers, taking into account the $8,000 tax credit, mortgage interest and property tax deductions. The overall tax liability savings at the end of five years for the buyers is over $11,000.
The $8,000 buyer tax credit must be taken advantage of before December 1, 2009. This credit is a great tax advantage in the first year of ownership--don't miss out!
1 comment:
Thats a great tax credit. It'll also help cushion the loss if the market isn't at the bottom yet.
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