There is Still a TAX CREDIT out there, but for how long?

by Mark Buford on June 3, 2010

in Financing/Mortgage

What is the California Tax Credit &how does it relate to Sunnyvale Real Estate?

The California tax credit that began on May 1st, the day after the Federal tax credit ended, is there for 1st time home buyers, but for how long.

The stipulations for the 2010 California Tax credit taken for the Californian Franchise tax board are:

- It runs from May 1, 2010 to August 31, 2011

- that you have not owned a home for at least 3 years (so if you never owned a home, then you definitely qualify),OR the property has never been lived in (New Construction – everyone is eligible)

- There are no annual income restrictions

- that the price of the home is > $200,000 for you to get the entire $10,000, so virtually every home for sale in Sunnyvale qualifies for this stipulation

- That the $10,000 is paid back to you over 3 years, so essentially you get a $3,333 tax break for the next 3 years

- The other caveot is that there is only so much money allocated. $200,000,000 to be exact.

What’s more, is that (now I have not found an official source for this) 1/4 of the money, that’s 25%, is gone. That is after 1 month. Now again, I don’t know if this had been allocated or earmarked before the program began, though this money is gone. That means the tax credit may not be available for long. It is supposed to end on April 31, 2011, though it very well could end much sooner, if the money dries up.

So What??

So, what you need to do is decide: Do I want to buy a home in the next couple years?

Do I take advantage of prices not being affected at all with this tax credit, interest rate are down due to global factors that could change quickly, and that the economy appears to be stabilizing and if you have a job, most likely, in the Sunnyvale Real Estate Market, those jobs are here to stay. You decide

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Post by Mark Buford

Mark has written 37 articles.

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