Facts Regarding Obtaining 10k California Tax Credit From 1st Nationwide Mortgage

Owning a home for the first time or replacing a previous home is an exciting experience. It also allows a person to establish themselves in a new neighborhood and enjoy the privilege of home ownership. To assist taxpayers in this endeavor the Calif. Legislature enacted a 10k California Tax Credit First Time Homebuyer program.

Reading the many ins and outs necessary to receive this credit can be overwhelming to the average person. Deadlines are essential and steps outlined must be carefully followed to meet the qualification requirements. Dates of when the property was purchased and when the escrow changes are essential.

If a person sells their current home and purchases another they can be eligible for a credit on their income tax, if they occupied the previous home for a three year period. Other taxpayers eligible for this credit include those purchasing a brand new home and those who are purchasing a home for the very first time. This credit is regulated strictly by the dates of the transactions which must be strictly adhered to.

A tax credit for this home purchase is allowed for people filing a 2010 CA State Tax Return. It is available for homes purchased on or after May 1, 2010 and before January 1, 2011. If a contract is written on or before December 31, 2010 the taxpayer has until August 1, 2011 to claim the credit. Purchase date is determined by the date the escrow closes.

To obtain this credit, applications, together with required papers must be faxed to the Franchise Tax Board within two weeks of closing. Mailed applications are not accepted. The credit is limited to five percent of the purchase price or $10,000, whichever is less.

A number of different residences qualify for this credit. They include a regular house, houseboat, mobile home, manufactured home, condominium or a unit in a cooperative project. Information and required application papers are available on the Internet. Having all the proper paper work and adhering to the date deadlines is essential if one’s application is to be accepted.

For more information or queries in regards to 10k California Tax Credit please forward any correspondence to the 1st Nationwide Mortgage team at www.1stnwm.com