New And Improved California First-Time Homebuyers Tax Credit Signed

 
 

 

California Homebuyer Tax Credit Will Add $10,000

California Homebuyer Tax Credit Will Add $10,000

 

 

 

Californa’s Newest First Time Homebuyers Tax Credit is  for Resale Existing Homes and New Construction!

The CA first time homebuyers tax credit has been revamped, and will now allow a credit for first time home buyers looking for existing (resale) homes, as well as new construction. The passage of this bill is due in large part to CAR’s non-stop continual push in Sacramento over the last few weeks.

Homebuyers can claim 5 percent of the purchase price against their California taxes, up to $10,000.

“I have been up and down the state pushing this important housing bill that will get people off the fence and into homes while creating jobs and stimulating our economy,” CA Gov. Schwarzenegger said in a statement.

The new tax credit will provide $200 million in tax credits for home buyer tax credits, allocating $100 million for qualified first-time home buyers of existing homes, and $100 million for purchasers of new, or previously unoccupied, homes. The eligible taxpayer who purchases a qualified personal residence on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchases a qualified principal residence on and after Dec. 31, 2010, and before Aug. 1, 2011, pursuant to an enforceable contract executed on or before Dec. 31, 2010, will be able to take the allowed tax credit. Again, the credit is equal to the lesser of 5 percent of the purchase price or $10,000, and willl be applied to your taxes in equal installments over three consecutive years. Under AB 183, purchasers will be required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).

You may or may not remember the last CA tax credit ran out of money and was abandoned well before it was supposed to end, so once again, it is urged that anyone thinking of purchasing a home moves forward as quickly as possible if they want to be assured of securing their $10,000.

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