March 29, 2010
Folsom Homes | First Time Home Buyer Tax Credit
Fresh from the California Association of Realtors:
Late this afternoon, Gov. Schwarzenegger signed Assembly Bill 183, the Homebuyer Tax Credit legislation, into law.
AB 183 will provide $200 million for home buyer tax credits, allocating $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. The eligible taxpayer who purchases a qualified personal residence on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchases a qualified principal residence on and after Dec. 31, 2010, and before Aug. 1, 2011, pursuant to an enforceable contract executed on or before Dec. 31, 2010, will be able to take the allowed tax credit. The credit is equal to the lesser of 5 percent of the purchase price or $10,000, in equal installments over three consecutive years. Under AB 183, purchasers will be required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).
The positive impact of the federal home buyer tax credit is clear. Nearly 40 percent of first-time home buyers said they would not have purchased a home if the federal tax credit for first-time home buyers was not offered, according to C.A.R. research conducted last year.
The positive impact of the federal home buyer tax credit is clear. Nearly 40 percent of first-time home buyers said they would not have purchased a home if the federal tax credit for first-time home buyers was not offered, according to C.A.R. research conducted last year.
The state’s previous home buyer tax credit program was so successful that it ran out of tax credits by the end of June 2009, eight months before it was set to expire and just as housing markets appeared to be turning a corner. Unlike last year’s legislation, AB 183 adds a tax credit for the purchase of an existing home by a first-time home buyer.
This bill should also help create jobs in the housing sector including construction, lending and home improvement. I’m currently working with a few first time home buyers all trying to find the right home prior to the end of the federal $8,000 tax credit. The problem is we do not have a lot of quality Folsom homes for sale at reasonable prices. Those that are in great shape and priced right sell fast, often with multiple offers. The new tax credit will be a breath of fresh air, giving these buyers some additional time to find the right home!
Jeff Werolin is a Folsom resident, and a Folsom real estate agent who specializes in Folsom homes, and El Dorado Hills Homes. Werolin is also the Manager of Lyon Real Estate’s Folsom office and lists and successfully sells property throughout the Sacramento region. Call Jeff Werolin at 916.741.9505 or email him at jWerolin@GoLyon.com. Put Jeff’s real estate experience to work for you. DRE 01336771
Posted in
First Time Buyers
,Folsom
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