Important CA Tax Credit information

[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.

[treehugger]

[quote=AK] my principles aren’t quite strong enough to compel me to turn down free money.[/quote]

YEP 🙂

[treehugger]

[quote=AK] my principles aren’t quite strong enough to compel me to turn down free money.[/quote]

YEP 🙂

[treehugger]

[quote=AK] my principles aren’t quite strong enough to compel me to turn down free money.[/quote]

YEP 🙂

[treehugger]

[quote=AK] my principles aren’t quite strong enough to compel me to turn down free money.[/quote]

YEP 🙂

[treehugger]

[quote=AK] my principles aren’t quite strong enough to compel me to turn down free money.[/quote]

YEP 🙂

[chrisp]

I agree with AK. The FTB info says that “since many taxpayers will not be able to utilize the entire tax credit” the $100MM will be reduced by only 70% or 57% for each tax credit given. i.e. For each person who claims a $10K New Home Credit, they’ll only reduce the $100MM by $7K. $5.7K will be deducted for each first time home buyer credit from the $100K. Presumably, the reduction for first time home buyers is lower because they are less likely to have enough enough to take the full $10K credit over three years.

Also, by saying only $100MM is allocated to each, the state is saying only 17,500 people ($100MM/$5.7K) will be able to apply for and get the first-time home buyer credit. Only 14,300 ($100MM/$7K) people will be able to take the new home credit.

[chrisp]

I agree with AK. The FTB info says that “since many taxpayers will not be able to utilize the entire tax credit” the $100MM will be reduced by only 70% or 57% for each tax credit given. i.e. For each person who claims a $10K New Home Credit, they’ll only reduce the $100MM by $7K. $5.7K will be deducted for each first time home buyer credit from the $100K. Presumably, the reduction for first time home buyers is lower because they are less likely to have enough enough to take the full $10K credit over three years.

Also, by saying only $100MM is allocated to each, the state is saying only 17,500 people ($100MM/$5.7K) will be able to apply for and get the first-time home buyer credit. Only 14,300 ($100MM/$7K) people will be able to take the new home credit.

[chrisp]

I agree with AK. The FTB info says that “since many taxpayers will not be able to utilize the entire tax credit” the $100MM will be reduced by only 70% or 57% for each tax credit given. i.e. For each person who claims a $10K New Home Credit, they’ll only reduce the $100MM by $7K. $5.7K will be deducted for each first time home buyer credit from the $100K. Presumably, the reduction for first time home buyers is lower because they are less likely to have enough enough to take the full $10K credit over three years.

Also, by saying only $100MM is allocated to each, the state is saying only 17,500 people ($100MM/$5.7K) will be able to apply for and get the first-time home buyer credit. Only 14,300 ($100MM/$7K) people will be able to take the new home credit.

[chrisp]

I agree with AK. The FTB info says that “since many taxpayers will not be able to utilize the entire tax credit” the $100MM will be reduced by only 70% or 57% for each tax credit given. i.e. For each person who claims a $10K New Home Credit, they’ll only reduce the $100MM by $7K. $5.7K will be deducted for each first time home buyer credit from the $100K. Presumably, the reduction for first time home buyers is lower because they are less likely to have enough enough to take the full $10K credit over three years.

Also, by saying only $100MM is allocated to each, the state is saying only 17,500 people ($100MM/$5.7K) will be able to apply for and get the first-time home buyer credit. Only 14,300 ($100MM/$7K) people will be able to take the new home credit.

[chrisp]

I agree with AK. The FTB info says that “since many taxpayers will not be able to utilize the entire tax credit” the $100MM will be reduced by only 70% or 57% for each tax credit given. i.e. For each person who claims a $10K New Home Credit, they’ll only reduce the $100MM by $7K. $5.7K will be deducted for each first time home buyer credit from the $100K. Presumably, the reduction for first time home buyers is lower because they are less likely to have enough enough to take the full $10K credit over three years.

Also, by saying only $100MM is allocated to each, the state is saying only 17,500 people ($100MM/$5.7K) will be able to apply for and get the first-time home buyer credit. Only 14,300 ($100MM/$7K) people will be able to take the new home credit.

[Author]

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