Your Real Estate Connection

THE FIRSTTIME HOME HOMEBUYER TAX CREDIT HAS BEEN EXTENDED IN CALIFORNIA!
Buyers should not delay, the state will be allocating the tax credits on a first-come, first-served basis. Here are some important facts you should know. What qualifies a party as a first time buyer? Any individual (and the individual's spouse/RDP, if married on the date of purchase) who did not have an ownership interest in a principal residence, either in or out of California, during the preceding 3 year period ending on the date of the purchase of the qualified principal residence. If the buyer is married on the date of purchase and either the buyer or the buyer's spouse/RDP had an ownership interest in a principal residence during the preceding 3 year period, the buyer does not qualify for the First-Time Buyer
Credit even if the spouse/RDP is not going to be on title.
Escrow must close between May 1 and December 31, 2010. Or, if under contract on or prior to December
31, 2010 the buyer will still qualify if it is their principal residence on or after December 31,2010 or before August 1, 2011. Buyer must live in the home as their principal residence for a minimum of two years or forfeit the credit. It will have to be repaid to the state. A qualified principal residence, for purposes of the First-Time Buyer Credit, must:
- Be a single family residence, either detached or attached. This can be a single family residence, a
condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home. A home constructed by the taxpayer is not eligible since the home has not been "purchased."
-Be eligible for the California property tax homeowner's exemption. The "purchase date" is defined as the date escrow closes, not the date you enter into a fully executed
real estate contract. The amount of the tax credit is equal to the lesser of 5% of the purchase price, or $10,000, whichever is less and is a credit against tax, taken in three equal amounts over three consecutive years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over. This is an "arms-length transaction" this mean the buyer cannot be related to the seller. Buyer must not qualify as a dependent of any other taxpayer for the tax year of the purchase.
The minimum age of the buyer is 18. (a taxpayer that is married as of the date of purchase will be considered to be 18 if the spouse/registered domestic partner (RDP) of the taxpayer is 18 or older on the date of purchase.) Applying for the 2010 First-Time Buyer tax credit: Applications must be faxed after escrow closes. The new application will be available by May 1,2010. The state will deny the application if the 2009 form is used or if they receive the 2010 application before May 1,2010. Unlike the 2010 New Home Credit a buyer WILL NOT be able to reserve the tax credit before escrow closes.
Contact the California Franchise Tax Board if you need further information.Main: (888) 792-4900 (press 1)

Upcoming Events

South Park is compliments of:
Samantha Keenan
Realtor
DRE # 00481583, SRES

Coldwell Banker
Residential Brokerage
2655 Camino Del Rio N., Ste. 450
San Diego, CA 92108

Send an Email
View Website
Phone:
619-234-1282
Cell:
619-548-5258
Fax:
619-234-5334