California's first time homebuyer's credit is back!

Governor Arnold Schwarzenegger signed the California the Homebuyer Tax Credit (AB 193) legislation into law on Thursday March 25. It provides a state tax credit to first-time homebuyers who buy new or existing homes from May 1 until the end of 2010. First time homebuyers are definite as those who haven't owned a home in 3 years. Homebuyers can claim 5 percent of the purchase price against their California taxes, or up to $10,000. There was already a credit in place for those buying new construction, but this new law allows the credit for those buying existing homes as well. 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 applied 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). So even if the Federal tax incentive is gone, California has an incentive of its own now. If you were unable to take advantage of the Federal credit you now have until December 31 of this year to get into escrow and claim your California tax credit! For information on available homes in Silver Lake, Echo Park, Los Feliz, and surrounding areas, contact me directly at 213-215-4758 or check out LApropertySolutions.com Jenny Durling Broker Associate L.A. Property Solutions 213-215-4758 LApropertySolutions.com Copyright © 2010 By Jenny Durling *All Rights Reserved * California's first time homebuyers' credit is back!