More California Tax Credit Info!
April 21st, 2009 categories: Money and Mortgages
Once again there is good news for taxpayers! On February 20th, 2009, the California Senate Bill 15 passed. This bill provides for a tax credit against the net tax for a taxpayer who purchases a home that has NEVER been lived in. Below is a breakdown on how it works:
- The tax credit is good for 5% of the home’s price or $10,000, whichever is less.
- The home must be purchased between March 1st, 2009 and March 1st, 2010.
- The seller must provide a certification to the taxpayer and the Franchise Tax Board within 1 week of the sale that the residence has never been occupied.
- Home buyers will receive the tax credit, in equal amounts over 3 years.
- Not limited to first time home buyers !!!!
- No max income limitations
- No down payment requirement
- Must be the taxpayer’s primary residence
- If the home remains the taxpayers primary residence for 2 years, no portion of the tax credit has to be paid back.
- The $10,000 state tax credit can be used again with the federal tax credit of up to $8,000 for 1st time homebuyers for a total possible tax credit of $18,000.
- The tax credit is limited to the first 10,000 new home purchases.
This information was provided by KPL. If you have any questions, please contact KPL or email me at: kathy@kathyvilla.com