This time around the tax credit is for new home buyers (not owned home in 3 years) and new home purchase.
“Governor Arnold Schwarzenegger has announced he will sign AB 183 on Thursday, March 25th. The signing ceremony will take place at 2:30 pm, at the Granville Homes, “La Ventana” new home community (6128 North Sycamore Avenue) in Fresno!
At that time, the bill will become law. The effective date for implementing the new law is May 1, 2010. Between March 25th and May 1st, look for the Franchise Tax Board to put forward procedures and forms to complete the policies outlined in the bill.”
I am a new home buyer supposed to close mid April and trying to push back to May 1. Rules state you must close “on and after May”.
I am potentially going to get $18000 in tax benefits. Which sounds awesome, but really isn’t that spectacular?
From what I am researching I am going to have to change my tax with holdings in order to get less withheld so I will get a big tax bill at the end of the year for the next 3 years. That appears to be the only way the California one will be applicable to me.
I like the Feds they just hand the $8000 back to you, California makes it sound good, but it is ONLY a credit, if you don’t owe the state above $3300 you only get a credit for what you owe. Meaning my understanding if I owe $300 I do NOT get a rebate of $3000. I only get a credit towards the $300.
