See http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml#def3 for direct update from the FTB.
While yesterday's blog was about what California is "taking away", today is about your limited opportunity to receive.
Here is the summary of California's $10,000 Tax Credit for New Home Buyers:
- The actual credit is 5% of the purchase price, up to $10,000.
- "New" literally means new. It has to be new construction - never lived in before. (The rationale is that new homes are more advantageous to California's economy)
- This must be your principal residence
- The credit is spread over 3 years ($3,333) per year, starting in the year of purchase.
- You must live in the house at least two years
- California has only budgeted $100 million, once the money is gone, so is the credit (The credit officially starts March 1, 2009 and ends December 31, 2009)
- If you qualify for the $8,000 federal credit, you can use both and receive a total of $18,000! See our blog at http://activerain.com/blogsview/935253/8000-Tax-Credit-10-Things-You-Should-Know
As always, tax laws evolve over time and there are always more details, so be sure to consult with your tax advisor and realtor before buying or selling real estate.
Nancy Moeller, CPA, Real Estate Broker
Seven Gables Real Estate
Direct: 714 276-7006
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Hi Nancy:
Is this credit just for single family dwellings? I ask because there have been some wordings of that in various versions of the bill. Observe,
Here is the 2nd version of the bill that mentions SFD:
http://tinyurl.com/ce9ute
Here is a version from a few days later that doesn't mention it:
http://tinyurl.com/af5dqn
Any ideas?