Senate Bill 401:
“Qualified principal residence” indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence. It includes both first and second trust deeds. It also includes a refinance loan to the extent the funds were used to payoff a previous loan that would have qualified.
The tax breaks apply ... [Read More]
Senate Bill 401:
“Qualified principal residence” indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence. It includes both first and second trust deeds. It also includes a refinance loan to the extent the funds were used to payoff a previous loan that would have qualified.
The tax breaks apply to debts discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.
Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.
If you would like more info on this, please contact me. Thanks!
This is a fantastic boon to first time homebuyers. Some will be able to double dip! It’s good until the end of the year (or up to the $100m allotment, which analysts say could be no more than 6mos!) and will keep our market moving when the federal tax credit expires April 30.
Good job Governor ... [Read More]
This is a fantastic boon to first time homebuyers. Some will be able to double dip! It’s good until the end of the year (or up to the $100m allotment, which analysts say could be no more than 6mos!) and will keep our market moving when the federal tax credit expires April 30.
Good job Governor Schwarzenegger!
image courtesy SacBee
Schwarzenegger signs homebuyer tax credit bill
By JUDY LIN Associated Press Writer
Posted: 03/25/2010 03:35:52 PM PDT
Updated: 03/25/2010 05:20:08 PM PDT
SACRAMENTO, Calif.—Gov. Arnold Schwarzenegger on Thursday signed a bill aimed at selling California’s vacant homes and encouraging new construction by extending a $10,000 state tax credit for first-time homebuyers.
The governor signed a bill the state Legislature passed on a bipartisan vote earlier this week. It provides a state tax credit to first-time homebuyers who buy new or existing homes from May 1 until the end of 2010.
Homebuyers can claim 5 percent of the purchase price against their California taxes, or up to $10,000.
To view the whole story: http://www.mercurynews.com/news/ci_14758…
