San Diegans know that our Legislature ended a “Californian stand-off” last week when they agreed to approve the state budget. While the budget was laden with pork, there might just be a little slice of bacon for you.
Buyers of “new” homes or condominiums might qualify for a $10,000 tax credit, granted over three years, in addition to the $8,000 Federal tax credit. The Sacramento Bee gives us the details:
- It applies to new California houses or condos bought as primary residences between March 1, 2009, and March 1, 2010.
- It’s for 5 percent of the purchase price or $10,000, whichever is lower.
- The state will take $3,333 off a buyer’s state taxes starting in the year of purchase and for two following years.
- The owner must live in the new home or condo for two years or lose the break.
- Collectively, the state tax break is limited to $100 million. At $10,000 per tax break that’s 10,000 new dwellings.
What does this mean for you? Tax breaks shouldn’t be a justification to overpay for a property. Yet if you’re comparing apples to apples, this might just be the edge you need to choose the new home over the resale.
