024. california’s tax credit monies may be gone within 10-20 days!

In this episode, i discuss an article i just recieved from california association of realtors“realegal” newsletter. they are predicting the monies for the first-time homebuyer tax credit will be gone within 10-20 days and possibly sooner. if you’re sitting on the fence about buying a home, you need to watch this now.
Hello everybody and welcome to another episode of the Reside Daily Bite; I’m your host, David Doucette. Today, it’s funny because when I created the idea of the Reside Daily Bite 23 episodes ago, I came up with a list of about 60-65 topics to discuss and what I’m realizing is there are so many good things to discuss, that on my list, I probably have talked 5 of those and the other almost 20 episodes have been things that have just been coming up along the way. So, it’s been really great and this one is one of those…I just went out and was thinking about what I was going to do for the daily bit, came back and this just came to my inbox and this one is really important.

It comes from the California Association of Realtors, from their realegal newsletter, and it’s about the California tax credit. And as you know, if you’ve been listening to previous daily bites, Californians can take advantage of a $10,000 tax credit beginning on May, which is great but here’s the news, the title of the article is “The California’s tax credit monies may go fast”. The $100 million allocated for California’s first-time homebuyer tax credits may be depleted in about 10 to 20 days or sooner…” that’s 10-20 days or sooner according to the C.A.R.’s (California Association of Realtors) economic team. So, the California’s Franchise Tax Board (FTB) plans to begin accepting applications on May 1, 2010 for tax credits up to $10,000 for first-time homebuyers and for homes that have never been previously occupied new construction. However, the total tax credit allocation for all taxpayers is $100 million for first-time homebuyers and $100 million for new homes, on a first-come, first-served basis.

So, C.A.R.’s forecast of 10 to 20 days to actually deplete that $100 million allocation for first-time home buyers, that’s based on estimated May sales figures and other parameters. But this is important… It does not take into account the possibility that buyers may delay escrow closings in April until early May to take advantage of the home buyer tax credit. And if that’s the case, it’s going to be depleted or could be depleted even sooner than 10-20 days. So, I think this is really good information to put out there now. Again, those of you who are sitting on the fence, it’s already April 15 and escrows are typically taking 30-45 days to close. It is possible to close sooner although more difficult but definitely if you’re on the fence and you want to take advantage of these California first time home buyer tax credit, now is really the time you need to do that.

Let me know if you have any questions or comments 1-800-476-5579 or feedback@residerealestate.com. My name is David Doucette, thank you so much for checking out the reside Daily Bite.

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