CA Homebuyers Will Like the New California State Income Tax Credit - starting May 1, 2010

Just in time when the US Homebuyer Tax Credit is set to expire on April 30, 2010, California Governor Schwarzenegger signed legislation (new law) on the State Homebuyer Income Tax Credit.

 

Governor Schwarzenegger on March 25, 2010, signed CA AB 183 providing $200 million for home buyer tax credits.  This allocates $100 million for qualified first-time home buyers who purchase existing homes and $100 million for purchasers of new, or previously unoccupied, homes.

 

Eligible taxpayers for this state tax credit must:

• Close escrow on qualified principal residences between May 1, 2010 and December, 31, 2010, or
• Close escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010. 

This credit is equal to the lesser of 5 percent of the purchase price or $10,000, taken in equal installments over three consecutive years. Under the bill, purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state). 

 

Buyers also must be at least 18 years old and be unrelated to the seller.  First-time buyers are defined as those who have not owned a home in the past three years.

 

Source: California Assoc. of Realtors, March 25, 2010.

 

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Harrison K. Long, Realtor & broker, Explore Group, Coldwell Banker Previews, Irvine, CA.  CA DRE #01410855.  ExploreProperties@gmail.com.  Lawyer - California State Bar Association member #69137.  National Association of Realtors, California Association of Realtors, and Orange County Association of Realtors.  Current Chairperson of Local Government Relations south committee at OCAR.org.  Newport Beach and Irvine area Realtor, broker agent and property information source. 

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If you want to take advantage of this CA homebuyer income tax credit, contact your local REALTOR and get going for planning to find and buy the right home.  And consult with a qualified income tax professional or certified public accountant about this CA income tax credit.  

Posted via email from Explore OC Homes