1000’s of Californians Whose Homes Were Foreclosed on or Sold at a Loss Would Get Tax Relief Under Measure Approved Thursday [4/8/2010] by the State Legislature
By Patrick McGreevy / Reporting from Sacramento
The bill would waive state taxes on mortgage debt that has been forgiven in a foreclosure or short sale. It is expected to affect about 34,000 taxpayers.
Gov. Arnold Schwarzenegger said he would sign the measure, which would also provide about $60 million in tax credits to green-energy companies, when it reached his desk. Californians can already claim the tax breaks on federal returns.
Lawmakers passed the measure in time for people to take advantage of it by the April 15 deadline for filing tax returns.
The short-sale provision would mean about $34 million less in tax revenue for the state over three years, according to the Franchise Tax Board.
The “green” credits are a response to the federal American Recovery and Reinvestment Act, which provides grants to firms for power plants that produce renewable energy. The federal government does not tax the grant money. Under the bill approved Thursday, California would provide similar relief.
Other parts of the measure, SB 401 by Sen. Lois Wolk (D-Davis), were called tax increases by Republicans. Even though they supported the tax-relief element, several GOP members of the Senate and Assembly voted against the bill, which was opposed by the Howard Jarvis Taxpayers Assn.
The changes would also make it harder to qualify a home as a principal residence for purposes of escaping capital gains taxes when the property is sold, and some penalties and interest charges to corporations would be increased, according to Therese M. Twomey, a principal consultant for the Senate Republican Policy Office.
These changes would bring in more than $10 million in new revenue over five years, Twomey said.
It’s located a short distance north of Huntington Central Park, the main Huntington Beach Library, the Huntington Beach Equestrian Center, and a short drive to the beach.
This home is ideally positioned on a desirable interior cul de sac street, and it’s in move-in ready condition.
Listed at $585,000.
Just a short note to remind all of you regarding the upcoming expiration of the First Time Buyer’s Tax Credit and MBS-Mortgage Backed Securities.
(1) The First Time Buyer’s Tax Credit will still be applicable to your transaction(s) if you have a valid open escrow by no later than April 30, 2010, and that escrow closes by no later than June 30, 2010.
(2) The extremely advantageous interest rates for home loans are expected to remain low until the Feds discontinue their backing of MBS-Mortgage Backed Securities. The Feds are scheduled to cease buying MBSs at the end of this month – March 30, 2010. When that happens it’s projected home loan interest rates will begin to rise and probably go up at least 75 basis points (0.75%) in the near future. If you are already in escrow make sure your lender has locked your loan and, even if your escrow closes April 1st or after, the interest rate of your new loan is protected (for the duration of the lock).
(3) Current Interest Rates for 30-year Fixed Rate Loans as of 3/16/2010:
A) Conforming Loans at $417,000 or under – 4.75% with 1 pt.
B) Conforming Loans under $729,500 – 5.00% with 1 pt.
C) Jumbo Loans between $729,500 to $2,000,000 – 5.25% with 1 pt.
The median list price in NEWPORT BEACH, CA 92660 this week is $1,682,500. Average Price-per-Sq.Ft is $542. Average DOM (Days on Market) is 245. Demand measured by the Market Action Index is increasing and days-on-market is trending downward. Even as more properties come available, these are positive trends for the market.
The median list price in NEWPORT BEACH, CA 92663 this week is $1,975,500. Average Price-per-Sq.Ft is $783. Average DOM (Days on Market) is 262. Demand measured by the Market Action Index is increasing and days-on-market is trending downward.
The median list price in CORONA DEL MAR, CA 92625 this week is $2,500,000. Average Price-per-Sq.Ft is $901. Average DOM (Days on Market) is 269. Inventory and days-on-market are climbing, while the Market Action Index has been flat recently. The trends point to a
The median list price in NEWPORT COAST, CA 92657 this week is $3,037,000. Average Price-per-Sq.Ft is $739. Average DOM (Days on Market) is 301. Inventory is tightening and days-on-market is falling. The Market Action Index shows demand heating up. These are relatively bullish signs for prices.
Frequently Asked Questions About the First-Time Home Buyer Tax Credit
The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.
The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.
The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.
For the rest of the story, click on http://www.federalhousingtaxcredit.com/faq1.php