Tax credit proposal if passed will have following highlights:
The Governor plans to set aside $200 million, twice the amount set aside last year. The credit will be offered on a first come first served basis till the fund is exhausted. Last year the fund ran out in 8 months. The legislature approved the extension Monday, which will provide an extra $200 million for income tax credits to Californian’s who buy a home between May 1st 2010 and Dec. 32, 2010 and closes escrow by August 1, 2011. $100 million for first time homebuyers purchasing existing homes and $100 million for anyone who buys a new, unoccupied home.
Ø The tax credit will apply to buyers of new & existing homes. The last credit was only applicable to new homes.
Ø The tax credit will be available only to first time home buyers.
Ø The current proposal is for the purchase of an existing home, as well as a newly built residence.
Ø The tax credit will be $10,000 or 5% of the purchase price whichever is lower.
Ø The tax credit would begin May 1st, 1 day after the Federal Tax Credit ends April 30th.
Ø The credit should last between May 1, 2010 and December, 31, 2010.
Ø The credit will be given in 3 payments to a taxpayer’s personal income tax returns over 3 year period; a credit of $3,333/year.
On Your Team,
Kurt Galitski
The Kurt Real Estate Group
Vice President, Weichman Realtors
877-957-6677