Jun
01
Did you miss the HomeBuyer Tax Credit on Carlsbad Homes?
By · CommentsDid you “Miss the Boat” on the Tax Credit for purchasing Carlsbad Homes?
Home Buyers credits have proven to be a significant stimulant on a nationwide basis but did you “miss the boat” if you are buying or selling Carlsbad Homes?
Carlsbad Homes and the Federal Homebuyers Tax Credit
The primary tax credit that has been affecting Carlsbad Homes is the federal one. Legislative changes late in November of 2009 extended the already existing dollar amount of the credit and the deadlines to purchase into 2010.
This tax credit for Carlsbad Homesprovides up to $8000 as an actual credit. What exactly is a tax Credit? A tax “credit” is better than a tax “deduction”! To explain, a deduction is where you would reduce your taxable income by the amount of your “deduction” in this case $8000. If for example you were in the 30% tax bracket, your savings would equate to ($8000 x .30) $2400. A credit is better because it offsets your actual tax liability…so your savings is the full $8000. For example, if at the end of the year you actually are getting a refund of $1000, once this credit is applied your refund would be $9000. BIG difference! Better yet, this credit does not have to be paid back as long as the purchaser keeps this property as their primary residence for 3 years following the purchase.
This same legislation made provisions for Carlsbad Move-Up buyers as well as first time buyers. These “Long-Time” owners of Carlsbad homes must have lived in their homes for 5 consecutive of the last 8 years immediately prior to purchasing their new home. The new primary residence purchase would also qualify for the credit but within the deadlines dates.
Those deadlines read as follows from the IRS website as follows:
- “You must have bought — or entered into a binding contract to buy — a principal residence on or before April 30, 2010. “
- “If you entered into a binding contract by April 30, 2010, you must close (go to settlement) on the home on or before June 30, 2010″
DID YOU MISS THE BOAT? Maybe NOT!!! Check out the California State Credit Below.
Carlsbad Homes and the California State Tax Credit
Your legislators in California are working hard to keep the market strong for your Carlsbad Homes. In fact, when the federal credit expired for Carlsbad homes they put a new bigger one in place for $10,000. This credit allows for first time buyers and move-ups. Like the federal tax credit, if you live in the new home for 2 years the credit does not have to be re-paid. Keep in mind the CA state tax credit does have limitations that the federal credit did not. Here are a couple worth considering when you are buying Carlsbad homes:
- You may enter into contract before May 1st, 2010 but must close escrow after May 1st, 2010.
- You must close escrow on or before Dec 31st, 2010
- The tax Credit is to be divided equally over the 3 years following the purchase of Carlsbad homes
- Funds are limited to $100,000,000 and are first-come-first-serve
- Reservation forms should be submitted to the state immediately following the close of your escrow
There are some great incentives to purchase Carlsbad Homes. In fact, I can’t remember a time when more stars were aligned than right now. The rates are great, the tax credits are LARGE and the inventory is heavily discounted already. Don’t hesitate, the time to look at Carlsbad Homes is NOW!
