$100M CA tax credit may last only weeks!

Comments Off on $100M CA tax credit may last only weeks!  | 

I’m working with clients right now who this directly applies to. IF the tax credit is important to you, as a buyer, it’s that much more important to try to get in contract immediately. If there is not an extension, or new funds are not applied to the program, it may be too late already for some to take advantage.

Note: Applications for the California tax credit must be faxed to the FTB after escrow closes. So, with that said, if you enter into contract today & have a 30 day close, the money may be there. (4-15-10 contract date / 30-day close 5-14-10 / projected money depletion: 5-10-10 * 5-20-10)

Read more below…

The $100 million allocated for California’s first-time homebuyer tax credits may be depleted in about 10 to 20 days or sooner, according to C.A.R.’s Economics team.  California’s Franchise Tax Board (FTB) plans to begin accepting applications on May 1, 2010 for tax credits up to $10,000 for first-time homebuyers and for homes that have never been previously occupied.  However, the total tax credit allocation for all taxpayers is $100 million for first-time homebuyers and $100 million for new homes, both on a first-come, first-served basis.

C.A.R.’s forecast of 10 to 20 days to deplete the $100 million allocation for first-time home buyers is based on estimated May sales figures and other parameters.  It does not take into account the possibility that buyers scheduled to close escrow in April may delay closing until May to take advantage of the tax credit.  If a shift in closings from April to May occurs, the first-time homebuyer tax credits may be depleted even more quickly than indicated above.

Courtesy: C.A.R.

Reblog this post [with Zemanta]

You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Comments are closed.