California Tax ; Forecasted to expire soon!

You may be aware that the federal tax credit of $8,000 for each first time home buyer expired on April 30. While it was widely anticipated that it would be extended by Congress, it is at this time expired. The tax credit was a major factor increase the demand for houses and may be responsible for keeping prices higher than they otherwise would be. You may also be aware that the state of California initiated a $10,000 credit designed to replace the end of the federal tax credit. However, what you may not be aware that the $100 million allocated for California’s first-time homebuyer tax credits may be depleted in about 10 to 20 days or sooner, according to the California Association of Realtors (CAR) Economics team. California’s Franchise Tax Board planned to begin accepting applications on May 1, 2010 for tax credits up to $10,000 for first-time homebuyers and for homes that have never been previously occupied. However, the total tax credit allocation for all taxpayers is $100 million for first-time homebuyers and $100 million for new homes, both on a first-come, first-served basis. CAR’s forecast of 10 to 20 days to deplete the $100 million allocation for first-time home buyers is based on estimated May sales figures and other parameters. It does not take into account the possibility that buyers scheduled to close escrow in April may delay closing until May to take advantage of the tax credit. If a shift in closings from April to May occurs, the first-time homebuyer tax credits may be depleted even more quickly than indicated above. If you are interested in buying a house to take advantage of this tax credit, please call me immediately so we can see what can be done to expedite things to get in line for the credit. If you are considering selling your house, let’s discuss what we can do to expedite the sales process to catch the buyers interested in this credit to help you get the best net equity from your sale. Here is a link to the state of California Franchise Tax Board with details: http://www.ftb.ca.gov/individuals/new_home_credit.shtml I am here to help you take advantage of this opportunity!