$10,000 TAX CREDIT

 

$8,000 California State Tax Credit

The new California state budget includes a $10,000 tax credit for the purchase of a new home!
The $10,000 tax credit has no income limit, and is good only for new homes that close escrow between March 1, 2009 and March 1, 2010 - but only while newly allocated state funds are available!
 
$10,000 Home Buyer Tax Credit For New Homes at a Glance:
 
• A tax credit of up to $10,000 (5 percent of home price or $10,000, whichever is less) for the purchase of a newly constructed, previously unoccupied home.
• Available starting March 1, and running until March 2010 or whenever the $100 million funding authority runs out.
• $100,000,000 will be allocated by the state’s Franchise Tax Board on a first-come, first-served basis (Once the funds have been allocated, the tax credit will no longer be available).
• Paid out to home purchasers over three tax years in equal amounts (i.e. $3300 for 2009, $3300 for 2010, etc.).
• Purchasers must reside in the home for at least two years.
• 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 or rents out the property before two years expire).
 
For more information, please visit the following site:
http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml 
 

**Tran, Rullamas & Associates is providing the information on this web site for general guidance only. The information on this site does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information on this web site is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.