California Tax Credit Extension | What You Need to Do to Recieve the Extended Funds in 2010
Great News for home buyers! Despite declining home sales for the entire first quarter of 2010 The CA house has decided to extend the home buyer tax credits. The Governor signed the bill in Fresno CA.
- $200 million in funds available on a first come, first serve basis – could help over 20,000 home buyers
- New homes for any taxpayer and new/existing homes for first time home buyers
- “Qualified principal residence” means a single-family residence, whether detached or attached, that is purchased to be the principal residence of the taxpayer, is eligible for the homeowner’s exemption under Section 218, and has either never been occupied or is purchased by a first-time home buyer.
- $10,000 tax credit or 5% of purchase price (whichever is lower)
- Credit given in 3 payments to a taxpayer’s personal income tax returns over 3 year period
According to the San Francisco Examiner
The first-time home buyer tax credit extension and expansion has won Congressional approval and is on its way to President Barack Obama. He’s expected to sign the measure as early as tomorrow. The U.S. House of Representatives, this morning, voted 403 to 12 to pass the measure, following unanimous U.S. Senate approval yesterday. The measure was passed as part of unemployment benefits extension legislation H.R. 3548. The extension and expansion of the popular first-time home buyers tax credit gives both new and move-up buyers a tax incentive to buy a home until at least April 30, 2010, longer for military personnel.
So What Steps To Take in order to Receive the Home Buyer Tax Credit in California?
- Get in Contract on a Home – Before you can apply for the tax credit you must be in contract on a home. There are several steps you must take to be successful in finding and closing on a home in the California Bay Area and surrounding cities. The first step anyone should take in finding a home is find out how much you can afford without breaking the bank. Homes in the California Bay Area while very inexpensive relative to five years ago, are still very desirable and more expensive than many other places in the state or even in the entire country for that matter. The best way to find out what you can afford when buying a home is to get a referral or find a good qualified Mortgage Broker or Loan Officer in the local area that you plan to buy in. You can find a detailed how to step by step guide for buying a home at our 10 Essential Tips to Buying a Home in the California Bay Area!
- Apply For the State Tax Credit – You must fill out CA and Federal Tax Forms in order to receive the credit in a timely manner. You can learn more about and download the proper forms to receive the tax credit at the California Franchise Tax Board site.
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Until Next time Here is to your success! Jason Wheeler 925-285-2172
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