The Low-Down on the new Tax Breaks…
February 24, 2009
Yes, Tax Break(s)
…as in more than one. No doubt you're aware of the $8,000 federal tax break for home buyers that's now in place as a result recently approved of the American Reinvestment and Recovery Act of 2009. But did you realize that the State of California is kicking in a similar plan that could net qualified home-buyers and additional $10,000 in tax credits?
Part of the new state budget that was finally passed (what a soap opera that was) allocates $100M in California State Tax credits (not to be confused with Federal tax credits) for homeowners under similar guidelines to the federal plan.
Does that mean $18,000?
Yes. But you'll have to fall into a unique set of criteria to be able to cash in on all $18,000. And, unlike the federal plan, the state tax break is capped at $100M, which puts the tally at around 10,000 home sales. (Hint, you'll need to act quickly to cash in on this one.) But this shows the urgency of the state and federal governments to jump-start the stagnant housing market in California.
Here's the Scoop.
Jim Wasserman wrote a great article that was recently published in RISMedia and the Sacramento Bee that concisely summarizes the details of both plans. It's well worth your time to read it — here's the link:
So if you're looking for a reason to hop off the fence and buy that first home, I just gave you 18,000 of them. Let's go shopping…