Our governments, both Federal and State, are slinging cash like Flo slings hash at breakfast. Sometimes it makes it the right table and sometimes in the rush it ends up at the table by the door. We all want to know: "What does this mean to ME? Where's my cash, Baby!"
If you are thinking of buying a home (primary residence not investment), have not owned one in the last 3 years, and you make under $75,000 single, or under $150,000 married, then our federal government will be handing you $8,000 after you file your 2009 taxes. This is a tax credit, not a deduction, which means that if you only owed $4,000 in taxes this year you will be getting a $4,000 refund check after you file. Unlike the previous credit this one is FREE, you don't have to pay it back. You can think of it as a little home improvement savings account. That is the point of a "stimulus" package - putting money back into the economy.
Even better yet, if you are a resident of California a nifty little tax credit has been released in our recently signed budget: $10,000 maximum tax credit (or 5% whichever is less) for ALL new construction home (primary residences not investment) purchases in the next year. This tax credit will be spread out over three years. There are no income caps and it is in ADDITION to the federal credit. So, yes, that means up to $18,000 tax credit. Woohoo! That is some cash baby!
No flipping! You have to keep the home for 2-3 years depending on the program. We don't want to start that again, now do we?
Every component of the package is designed to jump-start our economy, but the Tax Credit is a measurable "money in my pocket" action. Share the word!
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