patrick.net

Can someone explain this credit a bit further? I'm having my taxes done tonight. (bought my first house 2/2010). It would sure be nice to get some more of the tax money I paid in back :P
Being dink's = taxed out the butt.

The FTB site is SOOO helpful

http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml

SF ace says

There is no state income tax credit if purchased in 2/2010, that program should start in May 1 2010. You should however be eligible for the fed program but that should be a 2010 return item, not 2009. To the extent you are qualified to the tax benefit, you should lower your federal (but not state) withholding to avoid a massive refund in 2011 for fye 12/31/2010.

I do qualify for the fed one, and I think it can actually be claimed on the taxes i'm filing this year (will see what my tax person says); if so great, my reserve fund will be back up to where i'm comfortable. Too bad the state one doesn't start till after 5/1.

from http://www.federalhousingtaxcredit.com/faq1.php#21

21.If I’m qualified for the tax credit and buy a home in 2009 (or 2010), can I apply the tax credit against my 2008 (or 2009) tax return?
Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 (or 2010) as if the purchase occurred on December 31, 2008 (or if in 2010, December 31, 2009). This means that the previous year’s income limit (MAGI) applies and the election accelerates when the credit can be claimed. A benefit of this election is that a home buyer in 2009 or 2010 will know their prior year MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

Taxpayers buying a home who wish to claim it on their prior year tax return, but who have already submitted their tax return to the IRS, may file an amended return claiming the tax credit using Form 1040X. You should consult with a tax professional to determine how to arrange this.

SF, are you sure about no income limit? Everything I've seen hasn't mentioned it either, but I didn't know if that truly meant there isn't one or that the article just didn't bother to mention it.

http://blogs.wsj.com/developments/2010/03/24/californias-tax-credit-will-home-buyers-stampede-for-18000/

It looks like buyers will be able to qualify for both the state and fed program if you fall within the "window of opportunity".

Ok, thanks.

I was just about to post your last line. Yeah, if people act quickly (not that they necessarily should), it is possible to get both the fed and the state benefits.

Wait, so a state that's having huge budget issues manages to give away $10,000 to people to help prop up their bubbly housing market? Wow.

How do you think the state got into such a financial mess - being smart with their money?

Wow I got my refund in 1 week. California is back in business :)

Do you guys think it would be possible to postpone closing 3 weeks so I catch the CA tax credit also ?

What are the risks with bank & escrow. First time buyer here ( of course ) & not very familiar with the rules, but it's tough to pass up the extra 3k per year

screw California forever.

During a recession, many people suffer. And California decides the best it can do is give money to those who can afford to buy a new home? Really? that is the neediest group identifiable in the state today?

Now, someone will argue with me that its needed to get the economy rolling. Ok, lets just answer this one in advance: When your problem is too many homes, incentivizing more new home buying ranks up there with about the stupidest idea ever!

to cv_renter: offer your seller a couple thousand dollars more to postpone.

Policy like this is designed to provide a premium to the little larcenist in all consumers. It's just to keep money flowing, at all costs. I very much blame the public for stupid shit like this, because they take the bait without fail.

These current home buyers eager to take advantage of these gimmes will be the same crybabies whining they were duped when in three or four years their house prices dip and tank again,. They will be the victims, lured away from their better intentions.

I actually saw a house here locally that went up ten grand when the tax credit extension was announced. There was still a cached version of the original asking price online. In other words, if you're getting ten grand to buy a house, that same amount or more is baked into the pie. You are being soaked.

I agree with azrob00, if California petitions Washington for a bailout in a year or two because they're near defaulting, I'm going to join a protest for the first time in my life.

These tax credits are just giveaways to realtors and home sellers. If California is going to throw more red ink on their budget, how about they cut taxes some and make their state a little less hostile to business in general, instead of coddling their bubbly real estate sector.

"When your problem is too many homes, incentivizing more new home buying ranks up there with about the stupidest idea ever!"

That is why I have long proposed a home demolition credit. Let's demolish houses and replace them with airports. We can use more of them. We can also build more nuclear power plants. It's a win-win.

Let's see if this tax break helps the CA market, it certainly can't hurt it. I don't blame the state fro thrying to prop up the market. HousingWatcher says

“When your problem is too many homes, incentivizing more new home buying ranks up there with about the stupidest idea ever!”
That is why I have long proposed a home demolition credit. Let’s demolish houses and replace them with airports. We can use more of them. We can also build more nuclear power plants. It’s a win-win.

Uhm, it's not a 'win-win' if you live anywhere near the nuclear power plant. Last time I checked nuclear power plants are not a bonus on anyone's home buying check list. Just saying. Besides, just think of the ruckus the AcornHolers would raise if houses were torn down that could house perfectly good pimps and hos???

Austinhousingbubble says

I actually saw a house here locally that went up ten grand when the tax credit extension was announced. There was still a cached version of the original asking price online. In other words, if you’re getting ten grand to buy a house, that same amount or more is baked into the pie. You are being soaked.

I actually saw the same thing here as well. One house was listed for 409K and after this announcement, some realtwhore thought they could get 10K more, and they raised to 419K, loved it. I was thinking the opposite would happen after Apr 30. They might reduce 10K, but the state is now giving a hand. CA is the dumbest govt we got, we already threw 100M at this housing crap and throwing again good money after bad, instead of spending it in education or medical facilities. Geez. I think we need to vote these buggers out.

Seems like if the government keeps housing prices high, they'll keep revenues higher on property taxes.

It might cost a good amount of money to keep them high, but having a good portion the 11.5M homes in california asking for a re-appraisal from the city could hurt even more.

Everyone is quick to jump on the band wagon, only thinking of one side, usually the side which profits them.

So as I read this, it appears that if one were to purchase a house and close escrow after May 1 but before june 30, one could qualify for both federal and state tax credits?