All this tax-credit talk is making me dizzy, so I can imagine what it’s doing to those who are not knee-deep in the real estate industry. So, in light of the Federal Credit, which is going bye-bye, and the State Credit, which is just hitting us next month (May). And, for some lucky Sacramento home buyers, if you meet the right time-line, you could take a combo tax credit, so my sources say! That means, if you get in escrow in the month of April (close by 6/30) you get not only the federal tax credit, but also the new state tax credit recently signed by the Governor.
So here’s how they break down:
FEDERAL: On the federal level you’ve got two goodies. The first time tax credit is for first time buyers in the amount of up to- $8,000. The amount is calculated based on the purchase price of the home (10% but cannot exceed $8,000) Since Sacramento real estate is, generally speaking, going to cost you at least $8,000, you pretty much get the whole amount. Also on the federal level is the move-up buyer tax credit in the amount of $6,500. That means as long as you are buying a house that is a more expensive house then you now own, you can claim this. Again, this tax credit is only good until the end of April…you must be in escrow prior to the end of April and your deal must close before the end of June, 2010 (which may be a bit tricky if you are buying a Sacramento short sale).
STATE: the new state tax credit is California law maker’s way of coming to the rescue since it knows the federal program is almost over. The state tax credit is for up to $10,000, but you cannot take it all at one time. The amounts would be $3,33.00 for three years in a row. This helps the state budget, by spreading it out over time. This program will be in effect until December, 2011. More information will come forth as we learn more about the details of this bill.
Again, if you act fast, you might be able to take advantage of both…and wouldn’t that be cool?!
Also, please note that this doesn’t apply to investors….in other words, the State and Feds are trying to help owner-occupied home sales.
For more information, tune in this week to www.inlovewithsacto.com where we’ll discuss the implications of the tax credits in further detail.
Ta ta for now!
Tamara
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- Gov. signing new homebuyer tax credit (lansner.freedomblogging.com)
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