Expert: Lori Frankfort - 6/18/2009

Question
Do you know exactly how the 2009 federal and state
government tax incentives work for first time home buyers
this year?  I know it's like you get a $8k credit from the
state and a $10k credit from the government on your first
primary home if bought this year.  Can you please explain
when/how you get this money?

Thanks!
Michael

Answer
The tax credit from the state of California is only applicable to new construction, to my knowledge.

Here is a faq page for the federal tax incentive:
http://www.federalhousingtaxcredit.com/2009/faq.php

This money is a tax credit, they don't give you the money at the time of closing, it's a credit when you prepare your taxes at the end of the year.

Best,
Lori