Governor Schwarzenegger will be signing into law an extension of the home buyer tax credit (up to $10,000) for residents of California. This tax credit is eligible to first time home buyers of the Inland Empire, Riverside, San Bernardino, Orange, San Diego, and Los Angeles counties who purchase new or existing homes between May 1st and December 31, 2010. It is also available to ANYONE else who purchasing a home that is new and unoccupied.
This tax credit is not eligible for investors, people buying second homes, or investment properties. Qualifying home buyer must be at least 18 years of age and unrelated to the seller.
The state of California has allocated up to $200 million total dollars for this home buyer tax credit program. $100 million in credits to first timers buying existing homes and $100 million to anyone buying a new unoccupied home. With the avage price home for a first time home buyer being between $200,000 to $225,000, this will help about 20,000 buyers receive tax credits. Don’t miss out on this sweetheart deal, start your home search now.
What is a First Time Buyer? A person who has not owned a home in the last three years
Buyers will receive a tax credit up to 5% of the purchase price, up to a maximum of $10,000. The $10,000 will be dispersed in equal increments to the home buyer over three years. If qualifying for the full $10,000, you will receive $3,333 each year if your state liability is that much. Buyers should consult with a CPA to determine if you will receive the full amount due to this being based on your ‘net tax’ as defined in Section 17039.
Source: www.kpsplocal2.com
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