Up to a $10,000 Tax Credit for California NEW HOME Buyers
May 2nd, 2009 categories: Legislative, Local San Diego News You Can Use, San Diego Mortgage Banks and Loans Info, San Diego Real Estate, San Diego Relocation
The Governor signed into law a senate bill that provides New Home Buyers with a tax credit when they purchase New Construction as a primary residence in California.
Between March 1, 2009 and March 1, 2010, New Home Buyers can earn a tax credit up to $10,000 on a qualified personal residence. The qualified property an be a single family home or an attached property. There is 100 million in tax credit available so it will be available on the next two years on a first come, first serve basis.
The qualifying rules are as follows:
The Buyer must occupy the New Home for at least 2 consecutive years after the purchase.
The Seller of the new home must certify within one week of the sale that the New Home has never been lived in.
The Buyer must be eligible for the homeowner tax exemption.
Buyer must make application for the tax credit prior to the close of escrow.
The amount of the credit will be the lesser of 5% of the sales price up to $10,000.
The credit will be claimed over three consecutive years and a copy of the Seller Certification must accompany the tax return.
The Franchise Tax Board will be working with Title and Escrow companies to implement the program throughout the state. What’s is especially nice is that the New Home Buyers may also qualify for the Federal $8000 tax credit if they are first time home Buyers.
I’ve been involved in taxations for longer then I care to admit, both on the individualized side (all my working life history!!) and from a legal viewpoint since passing the bar and following tax law. I’ve furnished a lot of advice and redressed a lot of wrongs, and I must say that what you’ve posted makes impeccable sense. Please persist in the good work – the more individuals know the better they’ll be outfitted to handle with the tax man, and that’s what it’s all about.