- Applies only to homes used as a taxpayer's principal residence.
- Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
- Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
And, although this new proposal by Gov. Schwarzenegger is still "up in the air", to continue encouraging homeownership among Californians, the Governor will propose to extend and expand the $10,000 homebuyer tax credit to include the purchase of existing homes in addition to new residences for first-time homebuyers. The buyer must not be a dependant and must be purchasing a home that does not belong to a relative. Under the Governor’s proposal, the Franchise Tax Board will extend the credit to buyers who purchase homes until $200 million dollars in tax credits have been granted.
PLEASE, if you're thinking of buying this year, do not assume that the $8000 tax credit will once again be extended as it was at the end of 2009. Many Congressional members were not in favor of this extension for various reasons. Californians may benefit from the additional proposal, however, that is unknown as of yet.
If you want to buy, start taking action now. If you need loan options, I will be happy to refer you. Remember, for purposes of these programs, a 1st time buyer is one who has not owned property in the last 3 years.
Please contact me if you are ready to proceed--remember, rates are still low.
For more information on buyer programs, go to http://www.juliahuntsman.com/.
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