California Home Tax Credit
It’s official. Gov. Schwarzenegger signed the CA Home Tax Credit legislation into law May 1, 2010. The CA tax credit provides $200 million for home buyer tax credits ($100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes).
Who’s Eligible?
Home buyers who purchases a qualified home on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchases a qualified home on and after Dec. 31, 2010, and before Aug. 1, 2011, will be able to take the allowed tax credit.
How Much is the Tax Credit?
The new CA tax credit is equal to the lesser of 5% of the purchase price or $10,000, in equal installments over 3 consecutive years. Residents are required to live in the home for at least 2 years or forfeit the credit (i.e., repay it to the state).
Shouldn’t I Wait to Buy?
The previous CA home buyer tax credit program was so successful that it ran out of tax credits eight (8) months before it was set to expire. There’s no reason to think it won’t be the same this time around, too.
For further information contact a Certified Public Accountant.