Bill Passes to Extend Tax Credit Deadline
Home buyer tax credit
A stand-alone bill passed today extending the closing deadline for the federal home buyer tax credit to Sept. 30, 2010. Backers of the measure said the 90-day extension would permit tens of thousands of home buyers whose paperwork didn’t clear by June 30 to still receive the credit. Estimates from the National Association of Realtors show as many as 17,700 home buyers in California may not receive the tax credit if the deadline was not extended.
California Gives New Home Buyers $100 Million
Are our Californian politicians screwed up or what? Can you believe that just days after passing a budget, the California legislature passed and Gov. Schwarzenegger signed, on February 20, 2009, a tax credit bill (Senate Bill 15) for taxpayers who purchase a principal residence any time after March 1, 2009, and before March 1, 2010. The allowed credit is for 5% of the purchase price or $10,000, whichever is less. The state of California allocated $100 million for this credit.
Although obviously well-intentioned, personally I cannot see how after raising the sales tax for the entire state, the state income tax, and the car registration fees, the state can turn around in just a few days and give away $100 million. In San Diego alone, $100 million had to be cut from the City school budget. Perhaps not giving away this new home buyer’s credit could have avoided any city school cuts!
As a Realtor, I am happy with any program that will increase sales,. As a California taxpayer I think it's unconscionable that at a time of fiscal deficits throughout the state, that this program is being instituted.
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