New Construction Tax Rebate – For California

Posted on March 6, 2009 | by Denny Oh

NewconstructiontaxcreditIn case you haven’t heard, California is offering a $10,000 tax credit to anyone who buys a home that’s never been lived in before – new construction.  You must buy your home on, or after March 1st, 2009 and before March 1st, 2010.  The home buyer must also live in the home for at least 2 years, beginning immediately after closing on it. 

To qualify for this tax credit, you just have to buy a new home in the specified time frame.  There’s no income limit, nor do you have to be a first time home buyer.  The home does however, have to be your primary residence.  Additionally, it cannot be a duplex, or any other non-single family home.  The

home can be detached or attached(condo) – just as long as it’s a new home and no one else has ever lived in it. 

So for all you downtown people, buildings like Sapphire Tower, Electra, Aria, Solara Lofts, Bayside, etc., all qualify.  Even some of the resales will qualify, just as long as the current owner has never lived in it.  There is a catch however – California only has $100 million reserved for this tax credit.  Once it’s used up, it’s gone. 

Here’s a link that gives you some more info and it will also update you on how much of the $100 million is left.  I’m not sure how often it’s updated though, so act sooner than later.  And…if you’re a first time home buyer(someone who’s never owned a home, or someone who hasn’t owned a primary residence in the last 3 years), you can get an additional $8,000 tax break.

Want my advice?  Look for a home now.  If you need to sell your home to buy, list it now.  Otherwise you’ll miss out on deals and regret being so lazy.  Doesn’t it make sense to see what’s out there now?  Even if you think prices are going to drop, which I do think will happen, you might find a great deal today.  Not looking now is just you being lazy.  What’s the worst that could happen?  You find a home that you love???

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