Everyone in Downtown San Diego were all in a rush at the end of April trying to close escrow before the tax credit stopped being in effect on April 30th of 2010. No worries anymore…take advantage of the Tax Credit for your Downtown San Diego Condo or Downtown San Diego Loft with the new Tax Credit Program. If you purchase a qualified principal residence on or after May 1, 2010 and before January 1, 2011 this Tax Credit is available for you.
A qualified principal residence, for purposes of the New Home Credit, must:
- Be a single family residence, either detached or attached. This can be a single family residence, a condominium,
a unit in a cooperative project, a house boat, a manufactured home, or a mobile home.
- A home constructed by the taxpayer is not eligible since the home has not been “purchased.”
- Have never been occupied. Sellers must certify that the home has never been occupied in order for a taxpayer to
receive an allocation of the credit.
- Be eligible for the California property tax homeowners exemption.
- Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the
These tax credits are also available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011. The purchase date is defined as the date escrow closes. Taxpayers may apply for the tax credits if they have entered into a contract before May 1, 2010, as long as escrow closes on or after May 1, 2010. However, taxpayers may not request a New Home Credit reservation if they have entered into the contract before May 1, 2010.
These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased.
For more information visit: www.ftb.ca.gov/individuals/new_home_credit.shtml and to read 92101 Urban Living’s former blogs about “Tax Credit” click on Tax Credit for New Home Purchase in Downtown San Diego and Schwarzenegger Signs new $10,000 California Homebuyer Tax Credit into Law!.