Californian homeowner's have great tax help- $18,000 Reasons to Purchase a Home
Stimulus from Sacramento
This government-led, economic injection comes directly from the desk of our governor, targeting not only first-time homebuyers but also anyone who buys a newly built home in the state. This $200 million program provides a tax credit of up to $10,000, spread over three years, with the intention of sustaining the housing recovery, and providing a bridge over slowly improving conditions.
Buyers of existing homes must close escrow between May 1 and December 31. Buyers of new homes can reserve a credit by entering into an enforceable contract between May 1 and Dec. 31, filing the proper paperwork with the tax board, and then closing escrow by August 1, 2011. Either way, buyers must plan to live in the house for two years after closing. The provisions are here.
With rates still hovering around historic lows, and bargains abounding throughout California, the state’s offer of $10,000 should definitely give rise to a short-term run on contracts. But note that, unlike the Federal program, the California tax credit is a first-come, first-served stimulus package—so when the money runs out, the credits run out. And, once again, to take advantage of both the Federal and State tax credit, the savvy first-time buyer will have to act fast.
In the simplest terms:
• Federal – Contract by April 30 and close by June 30
• State – Close between May 1 and the end of the year
• Double Dip – Contract before April 30 and close before June 30
Low prices, great rates and the state income tax credit make now a great time to buy, even if you miss the short window to tap the Federal credit as well. Please give me a call today and let’s get you into a new home.
Sincerely,
Mark Cohen
President
310-777-5401
markcohen@cohenfinancialgroup.com
This government-led, economic injection comes directly from the desk of our governor, targeting not only first-time homebuyers but also anyone who buys a newly built home in the state. This $200 million program provides a tax credit of up to $10,000, spread over three years, with the intention of sustaining the housing recovery, and providing a bridge over slowly improving conditions.
Buyers of existing homes must close escrow between May 1 and December 31. Buyers of new homes can reserve a credit by entering into an enforceable contract between May 1 and Dec. 31, filing the proper paperwork with the tax board, and then closing escrow by August 1, 2011. Either way, buyers must plan to live in the house for two years after closing. The provisions are here.
With rates still hovering around historic lows, and bargains abounding throughout California, the state’s offer of $10,000 should definitely give rise to a short-term run on contracts. But note that, unlike the Federal program, the California tax credit is a first-come, first-served stimulus package—so when the money runs out, the credits run out. And, once again, to take advantage of both the Federal and State tax credit, the savvy first-time buyer will have to act fast.
In the simplest terms:
• Federal – Contract by April 30 and close by June 30
• State – Close between May 1 and the end of the year
• Double Dip – Contract before April 30 and close before June 30
Low prices, great rates and the state income tax credit make now a great time to buy, even if you miss the short window to tap the Federal credit as well. Please give me a call today and let’s get you into a new home.
Sincerely,
Mark Cohen
President
310-777-5401
markcohen@cohenfinancialgroup.com
posted by Westside Investor's Eye at
10:29 AM
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