$10,000 Tax Credit For New Home Purchases (California)

From “the banker” via CA.gov:

“Tax Credit for New Home Purchase

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This tax credit is available for qualified buyers who on or

after March 1, 2009, and before March 1, 2010, purchase a qualified principal residence that has never been occupied. The buyer must reside in the new home for a minimum of two years immediately following the purchase date.

We will accept applications for allocation of credit by fax only (916.845.9754), starting March 1, 2009; however, we will not send notifications of credit allocation until we have developed procedures. Once we begin processing allocation applications, credits will be allocated on a first-come, first-served basis. We will update this page as soon as we begin mailing credit allocation letters.

Tax credit amounts

California allocated $100,000,000 for this tax credit. Buyers must apply for credit allocation from us. Applications will be reviewed and credit allocations will be made on a first-come, first-served basis. Once $100,000,000 has been allocated, the tax credit will no longer be available. Please check this page for updates on the allocated and remaining credits available.

Total credit allocated: $0
Remaining credit available: $100,000,000

Note: The remaining credit amount displayed above only reflects allocations processed as of the latest update. This amount does not include applications that have been received, but not yet processed.

California allows qualified new home buyers a total tax credit amount equal to either five percent of the purchase price or $10,000, whichever is less. Taxpayers must apply the total tax credit in equal amounts over three successive taxable years (maximum of $3,333 per year) beginning with the taxable year (2009 or 2010) in which the new home is purchased.”

See attached link, more fuel for Buyers!

http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml

I am waiting for clarification on the availability for Condos. If someone knows, please share. . .

6 thoughts on “$10,000 Tax Credit For New Home Purchases (California)

  1. What does this mean for new construction homes in San Francisco that are brand new from the ground up, but technically classified as a “rennovation” according to the planning documents as a way to get through the SF Planning Process quicker/easier. An example would be 313 Duncan. Are purchasers of those homes SOL?

  2. What does this mean for new construction homes in San Francisco that are brand new from the ground up, but technically classified as a “rennovation” according to the planning documents as a way to get through the SF Planning Process quicker/easier. An example would be 313 Duncan. Are purchasers of those homes SOL?
    Oops…forgot to say great post! Looking forward to your next one.

  3. What about condo conversions? Condos that have been broken down to the frame and rebuilt into new condos? Please someone reply. I have a contract to sign and want all tax incentives with it. Thanks

  4. Me too–the agent said he read somewhere that condo conversions weren’t eligible, but I don’t see it anywhere.

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