Important CA Tax Credit information

[livinincali]

After itemizing taxes especially with the mortgage interest deduction you’d probably have to make a little over $100K gross to get the full credit. For example you could pay CA 4,000 dollars, normally get back 1,200 and then the tax credit would be worth 2,800 instead of 3,333. I guess the way to look at it is you won’t be paying CA taxes for the next 3 years but that might not add up to 10,000.

The other thing to think about is the stipulation in the bill that if too many people take the credit then the amount you receive will be reduced. I.e. the first time buyer credit can be reduced to a total of 5,700 or 1900 a year if too many people take it and the money runs out. There’s 100 million dollars for the first time buyers credit but it’s difficult to estimate how far that money will go because not everyone will get the full amount. I’d assume that once 15K to 20K homes are sold to first time buyers there will be some deduction in payment.

[AK]

Doesn’t sound to me like the individual payouts will be capped based on how many people claim the credit … I think they’ll only deduct 57% or 70% from the $100 million total for the purpose of deciding when to stop accepting applications.

Granted the state credit isn’t quite as much of a gimme as the federal credit … but if I could’ve possibly delayed escrow in order to get it, I would’ve done so. I still think both credits are bad for taxpayers, but my principles aren’t quite strong enough to compel me to turn down free money.

[AK]

Doesn’t sound to me like the individual payouts will be capped based on how many people claim the credit … I think they’ll only deduct 57% or 70% from the $100 million total for the purpose of deciding when to stop accepting applications.

Granted the state credit isn’t quite as much of a gimme as the federal credit … but if I could’ve possibly delayed escrow in order to get it, I would’ve done so. I still think both credits are bad for taxpayers, but my principles aren’t quite strong enough to compel me to turn down free money.

[AK]

Doesn’t sound to me like the individual payouts will be capped based on how many people claim the credit … I think they’ll only deduct 57% or 70% from the $100 million total for the purpose of deciding when to stop accepting applications.

Granted the state credit isn’t quite as much of a gimme as the federal credit … but if I could’ve possibly delayed escrow in order to get it, I would’ve done so. I still think both credits are bad for taxpayers, but my principles aren’t quite strong enough to compel me to turn down free money.

[AK]

Doesn’t sound to me like the individual payouts will be capped based on how many people claim the credit … I think they’ll only deduct 57% or 70% from the $100 million total for the purpose of deciding when to stop accepting applications.

Granted the state credit isn’t quite as much of a gimme as the federal credit … but if I could’ve possibly delayed escrow in order to get it, I would’ve done so. I still think both credits are bad for taxpayers, but my principles aren’t quite strong enough to compel me to turn down free money.

[AK]

Doesn’t sound to me like the individual payouts will be capped based on how many people claim the credit … I think they’ll only deduct 57% or 70% from the $100 million total for the purpose of deciding when to stop accepting applications.

Granted the state credit isn’t quite as much of a gimme as the federal credit … but if I could’ve possibly delayed escrow in order to get it, I would’ve done so. I still think both credits are bad for taxpayers, but my principles aren’t quite strong enough to compel me to turn down free money.

[pencilneck]

A minor irony is that many new homeowners with a child or two will pay little in California income tax for the first decade or so of owning a new home. Of course this isn’t true for high earners.

This tax incentive especially helps the childless.

[pencilneck]

A minor irony is that many new homeowners with a child or two will pay little in California income tax for the first decade or so of owning a new home. Of course this isn’t true for high earners.

This tax incentive especially helps the childless.

[pencilneck]

A minor irony is that many new homeowners with a child or two will pay little in California income tax for the first decade or so of owning a new home. Of course this isn’t true for high earners.

This tax incentive especially helps the childless.

[pencilneck]

A minor irony is that many new homeowners with a child or two will pay little in California income tax for the first decade or so of owning a new home. Of course this isn’t true for high earners.

This tax incentive especially helps the childless.

[pencilneck]

A minor irony is that many new homeowners with a child or two will pay little in California income tax for the first decade or so of owning a new home. Of course this isn’t true for high earners.

This tax incentive especially helps the childless.

[livinincali]

[quote]
I think they’ll only deduct 57% or 70% from the $100 million total for the purpose of deciding when to stop accepting applications.
[/quote]

I really don’t see anything in the text that suggests they’ll stop accepting applications. It seems like they’ll reduce payments to all that applied to stay under the cap. Maybe I’m reading something wrong though. See the second paragraph.

I’m not saying that I wouldn’t take this credit if I was planning on buying but sometimes people just hear the headline 10K tax credit to buy a home in CA and assume it’s just like the federal tax credit when it’s not.

This credit is a nice benefit to those who buy at the expense of the other tax payers but most won’t get the full benefit out of it.

[livinincali]

[quote]
I think they’ll only deduct 57% or 70% from the $100 million total for the purpose of deciding when to stop accepting applications.
[/quote]

I really don’t see anything in the text that suggests they’ll stop accepting applications. It seems like they’ll reduce payments to all that applied to stay under the cap. Maybe I’m reading something wrong though. See the second paragraph.

I’m not saying that I wouldn’t take this credit if I was planning on buying but sometimes people just hear the headline 10K tax credit to buy a home in CA and assume it’s just like the federal tax credit when it’s not.

This credit is a nice benefit to those who buy at the expense of the other tax payers but most won’t get the full benefit out of it.

[livinincali]

[quote]
I think they’ll only deduct 57% or 70% from the $100 million total for the purpose of deciding when to stop accepting applications.
[/quote]

I really don’t see anything in the text that suggests they’ll stop accepting applications. It seems like they’ll reduce payments to all that applied to stay under the cap. Maybe I’m reading something wrong though. See the second paragraph.

I’m not saying that I wouldn’t take this credit if I was planning on buying but sometimes people just hear the headline 10K tax credit to buy a home in CA and assume it’s just like the federal tax credit when it’s not.

This credit is a nice benefit to those who buy at the expense of the other tax payers but most won’t get the full benefit out of it.

[livinincali]

[quote]
I think they’ll only deduct 57% or 70% from the $100 million total for the purpose of deciding when to stop accepting applications.
[/quote]

I really don’t see anything in the text that suggests they’ll stop accepting applications. It seems like they’ll reduce payments to all that applied to stay under the cap. Maybe I’m reading something wrong though. See the second paragraph.

I’m not saying that I wouldn’t take this credit if I was planning on buying but sometimes people just hear the headline 10K tax credit to buy a home in CA and assume it’s just like the federal tax credit when it’s not.

This credit is a nice benefit to those who buy at the expense of the other tax payers but most won’t get the full benefit out of it.

[Author]

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