The new legislation, AB183, will provide a tax credit up to $10,000 to Californians who buy their first home or a newly constructed home. The tax credit goes into effect on May 1st.
Buyers who time it just right may also be able to qualify for the federal $8,000 first-time home buyer tax credit, for a total of $18,000 in write-offs. The federal tax credit is set to expire soon, though: contracts must be signed by April 30 and deals closed upon by June 30.
The new credit will cover home purchases made from May 1, 2010 to December 31, 2010, and will be available to home buyers on a first-come, first-served basis. According to the Governor's website, the tax credit will be applied "in equal amounts over a period of three taxable years."
A $100 million tax credit was approved back in February 2009 but ran out after four months. More than 10,000 Californians claimed the credit.
Endeavor Real Estate
6518 Greenleaf Ave., Suite 28
Whittier, CA 90601
Direct: (562) 945-0317
Fax: (909) 568-2487www.endeavorRE.com
Endeavor Real Estate
6518 Greenleaf Ave., Suite 28
Whittier, CA 90601
Direct: (562) 945-0317
Fax: (909) 568-2487www.endeavorRE.com
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