$10000 tax credit from May 1

I don't see anything that has changed here yet. It still means like IHO said above that you can double dip if you signed your contract before april 30th and close escrow between may 1st and june 30th.  (quite a few of 2010 collection home buyers/ Lake forest buyers like IHO) can be in this category.

Of course the money allocated should not run out before you do close escrow and submitt to them (in this case june 30th)

Am i not reading any important change correctly.


usctrojancpa said:
fe9000 said:
OK everyone, for those of you who are interested.  Please visit this site often for updates.  They just updated today 4/1/2010 for additional clarification.  I hope it's not for April Fools.
http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml
Click to expand...
Damn, this thing keeps changing by the day.  haha
Click to expand...
 
fe9000 said:
freedomcm said:
irvinehomeowner said:
Question: Why aren't you guys mad about this newest bailout? Where is this money coming from? Wouldn't you rather see it go towards all those teachers being laid off in California... or trying to relieve our debt?
Click to expand...

I'm very mad about this CA credit.  I would rather have the teachers.  WhereTF are they getting this $200M?
Click to expand...

I can't say that I am mad, but very surprised with this credit.  I do agree that there are better use with this money like you said the teachers, education, or relieve debt.  However, to the people that needs job in the construction field, they will say otherwise.  Perhaps they are looking at what to do with the money that will have the most short term impact.  Again, I am not agreeing with this credit just saying.  And now to think of it, if we take advantage of this but only able to get 70% of it and paying penalty and lock extension.  Not sure if it's worth it.
Click to expand...

If they were really concerned about jobs for house builders, they would have restricted it to new construction.  Selling used houses only creates marginal jobs (RE commissions, etc). 

CR has a few posts on this subject, only new homes have any meaningful impact on the economy.
 
While I agree somewhat, new housing isn't available in many cities so the credit is also meant to "help" the housing market in general and esp for first time buyers to make it easier them to purchase a home (limiting them to just new housing would be restrictive).

It's just interesting how such a small amount (relatively esp in SoCal) has such a psychological effect... even for us.
 
I disagree.

This bill isn't to "help" new buyers.  If it didn't exist, prices would be that much lower.

Its sole purpose is to help CAR.
 
freedomcm said:
I disagree.

This bill isn't to "help" new buyers.  If it didn't exist, prices would be that much lower.

Its sole purpose is to help CAR.
Click to expand...
freedomcm said:
I disagree.

This bill isn't to "help" new buyers.  If it didn't exist, prices would be that much lower.

Its sole purpose is to help CAR.
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Couldn't agree more with you.  The problem is that the CAR and NAR are very strong lobbying groups so that's why they got those tax credits passed.  I'm happy for my buyers who have/will benefit from them, but overall I want them expire and go away.
 
That's why I said "help" in quotes.

Although if its sole purpose it to help the CAR, I would think it would focus more on resale homes than new homes.

And while it can be viewed as helping the groups that lobby for such bills... I've been told that letting prices free fall has it's own downsides.
 
Since now a days state tax refund takes forever to come is it actually preferable to reduce your state tax with holding for next 3 years if you happen
to be in this window where you can benefit from the 10K credit.


irvinehomeowner said:
That's why I said "help" in quotes.

Although if its sole purpose it to help the CAR, I would think it would focus more on resale homes than new homes.

And while it can be viewed as helping the groups that lobby for such bills... I've been told that letting prices free fall has it's own downsides.
Click to expand...
 
new2irvine said:
Has anyone applied for the CA $10k tax credit?  I faxed over the 2 page application plus HUD-1 but it sounds like you won't hear back for 3 to 6 months.  Is there any way to verify that they received the fax besides the fax confirmation?  I scoured the website looking for info but didn't find any.
Click to expand...

Same here.  There is no confirmation and don't think if there is any way of getting one.
 
Does the fax at FTB work only during business hours. I tried after hours at 9pm today and
there was no answer. many times. Did it take people who have done it many tries to get the fax through?


new2irvine said:
Has anyone applied for the CA $10k tax credit?  I faxed over the 2 page application plus HUD-1 but it sounds like you won't hear back for 3 to 6 months.  Is there any way to verify that they received the fax besides the fax confirmation?  I scoured the website looking for info but didn't find any.
Click to expand...
 
freedomcm said:
irvinehomeowner said:
Question: Why aren't you guys mad about this newest bailout? Where is this money coming from? Wouldn't you rather see it go towards all those teachers being laid off in California... or trying to relieve our debt?
Click to expand...

I'm very mad about this CA credit.  I would rather have the teachers.  WhereTF are they getting this $200M?
Click to expand...

More BS from Sacramento...don't worry it's not their money they are spending.

Two things you can count on in California--death and more taxes!
 
waitin4ever said:
Does the fax at FTB work only during business hours. I tried after hours at 9pm today and
there was no answer. many times. Did it take people who have done it many tries to get the fax through?
Click to expand...

I was able to get it through, but I faxed during business hours.
 
I don't get this part..
http://www.ftb.ca.gov/individuals/new_home_credit.shtml

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. (Updated 04/28/10)

For a new home construction, I entered into contract before May 1, but COE won't be until August.  Does this mean that I can or cannot apply for it until after escrow closes?
 
annabanana said:
I don't get this part..
http://www.ftb.ca.gov/individuals/new_home_credit.shtml

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. (Updated 04/28/10)

For a new home construction, I entered into contract before May 1, but COE won't be until August.  Does this mean that I can or cannot apply for it until after escrow closes?
Click to expand...


That means you CAN apply for the credit after the escrow closes using the Form 3549-A.  However, you CANNOT reserve your spot before the escrow closes using the Form 3549-RR.  The Form 3549-RR is used to hold your place in line in case California runs out of money before your escrow closes.  Even if you filed Form 3549-RR, you still have to file Form 3549-A to get the actual credit within 2 weeks of closing escrow.

When does your escrow close?
 
Irvine2Irvine said:
annabanana said:
I don't get this part..
http://www.ftb.ca.gov/individuals/new_home_credit.shtml

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. (Updated 04/28/10)

For a new home construction, I entered into contract before May 1, but COE won't be until August.  Does this mean that I can or cannot apply for it until after escrow closes?
Click to expand...


That means you CAN apply for the credit after the escrow closes using the Form 3549-A.  However, you CANNOT reserve your spot before the escrow closes using the Form 3549-RR.  The Form 3549-RR is used to hold your place in line in case California runs out of money before your escrow closes.  Even if you filed Form 3549-RR, you still have to file Form 3549-A to get the actual credit within 2 weeks of closing escrow.

When does your escrow close?
Click to expand...

So it looks like I lose on both fronts.  I can't reserve, nor can I apply (at which point the funds will be gone most likely).  My escrow closes late July/early August.

 
annabanana said:
So it looks like I lose on both fronts.  I can't reserve, nor can I apply (at which point the funds will be gone most likely).  My escrow closes late July/early August.
Click to expand...

I think you should be fine for August close date.  The new house credit should not run out that fast.  It's only the "crazy" Irvine housing market that's selling new houses like hot cakes.  New houses in other cities are selling at MUCH slower rate.
 
Blueberry East and the Incident said:
I don't think the new home funds will run out that quick.

The first time buyer funds will run out by August, half of it is already gone. But you as new home buyer have a good chance.[
Click to expand...

Oh.  You know what, I didn't realize it was 100M for each program.  I thought it was 100M for both programs combined.  I saw that half of it was already gone for the first time homebuyer, but it doesn't show any statistics on new homes.

 
Did you guys hear how they have extended the closing requirements for the Federal tax credit?  There's serious talk that they'll extend the required closing date to 9/30/10 instead of 6/30/10 (you will have to signed the contract on or before 4/30/10 though).
 
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