Incentives for Millworks Home Buyers
Surprise Tax Credit for Millworks Home Buyers
There is a brand new tax break for buyers of new, unoccupied houses in California. The Millworks in Novato qualifies under this law!
The new state budget, announced in late February, gives a $10,000 tax credit to anyone who buys a new house between March 1, 2009 and March 1, 2010.
The way it works? Buyers will get up to $3,333 off their taxes for each of the first three years after buying.
Another huge benefit? The tax credit applies to both first-time AND move-up buyers (unlike the new federal home buyer tax credit, which is for first-time homeowners only). The California tax credit also sets no limits on income, meaning even the most expensive homes qualify.
The credit is on a first come, first served basis and applies to about the first 10,000 new homes at the full credit.
The tax break is aimed at stimulating new sales, as home builders come off one of their worst years in half a century.
Yet Another Tax Credit - the Federal Version
Home buyers are also getting a tax break from the federal government. But unlike the California tax credit, the federal credit is only for first-time home buyers.
If you are a first-time home buyer and you purchase a qualifying home between January 1, 2009 and December 1, 2009, you qualify for an $8,000 tax credit.
December 1 is not a typo. That's how it's worded in the law. They're not giving you until December 31st. But at least the $8,000 is a true credit, if you don't plan on moving within 3 years. A tax credit is much more valuable than a tax deduction. A credit reduces, dollar for dollar, the amount of tax you owe. A deduction merely reduces the amount of your income that is taxable.
How Much Home Can You Afford?
It's best to find out now so you can be prepared - and be competitive if and when you decide to buy. Pre-sales for The Millworks begin in late April. Find out how to get pre-approved for financing.