JRS Posted March 2, 2009 Report Share Posted March 2, 2009 The state has upped the ante in an attempt to revive the sagging housing market. As part of the budget, California is offering up to a $10,000 tax credit to buyers who purchase a new home before March 1, 2010, or until the $100 million in funding set aside for the program runs out. To earn the credit, buyers also have to agree to stay in the house for at least two years. Buyers must close escrow between March 1 and Feb. 28, 2010. The tax credit is paid over three successive years, beginning with tax year 2009. The home builder must certify to the state that the home has never been occupied. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted March 2, 2009 Report Share Posted March 2, 2009 Thanx for the info. taxbilly Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 2, 2009 Report Share Posted March 2, 2009 Also, the credit is paid out in 3 years, $3,333 per year. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 2, 2009 Report Share Posted March 2, 2009 Bet that is going to make a lot of people who are trying to sell their current homes mad, since it gives a big incentive to buy a new home instead of an older one. Is it only for first time buyers? Or can anyone who buys a new 'replacement' house get in on this deal? Quote Link to comment Share on other sites More sharing options...
JRS Posted March 2, 2009 Author Report Share Posted March 2, 2009 • There are no income limitations that have to be met by purchasers. • There is no first-time homebuyer requirement. • There is no repayment requirement (unless the purchaser sells, rents out, etc., before two years expire). Of course, there probably wont be any money to fund it after the first or second credit is issued. From the FTB: Homebuyers must certify that they will occupy the home as their principal residence for at least two years after the purchase. We will accept applications for allocation of credit by fax only (916.845.9754), starting March 1, 2009; however, we will not send notifications of credit allocation until we have developed procedures. Once we begin processing allocation applications, credits will be allocated on a first-come, first-served basis. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted March 3, 2009 Report Share Posted March 3, 2009 And note one other item on this, it is NOT REFUNDABLE. It can only lower your taxes to zero. I think there are very few middle income buyers that will get the full effect of the credit. It should help the upper income taxpayers. Be careful on advising your clients. If you tell them they are going to get $3,333 credit on their taxes in 09 10 & 11 and they don't get the big refund, you will be like Lucy Ricardo. "You got some splaining to do". Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
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