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Schwarzenegger’s new $10k tax credit

by sfishome on March 26, 2010

Schwarzenegger signs a new $10,000 tax creditapplied over a 3 year period – for those buying their first home or a new home.

The new legislation “gives the Franchise Tax Board authority to extend a total of $200 million in tax credits to California homebuyers; $100 million for buyers of new, unoccupied homes and another $100 million for first-time buyers of existing homes. The credit will be extended from May 1, 2010 to December 31, 2010.”

From what I gather the Close of Escrow can be on May 1st.  This may cause some sleepless nights for those in contract now with a Close date between now and April 30th.

So what’s a first time home buyer?  This taken from the actual bill “… any individual, or individual’s spouse, who had no present ownership interest in a principal residence during the preceding three-year period ending on the date of the purchase of the qualified principal residence.”

So if your spouse isn’t on Title to your current home and you’re buying a new one.  Or you’re really lucky and you sold in 2007 at the height of the market and you are ready to jump in now that the market is 15% off the peak…. good on ya mate.

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