La Jolla Real Estate: La Jolla Luxury Homes

More and more younger La Jollans are making the move to purchase their first La Home in one of La Jollas premier neighborhoods such as La Jolla Frams or La Jolla Shores.   So it is natural that you are ready to purchase your first La Jolla home with so many great Real Estate deals in the area.   You may be wanting to take advantage of the Tax Credit.  Time is running out for you to take advantage of this tax credit, you must close on your home by November 30, 2009 to take advantage of it!   So if you are thinking of taking advantage of it, it is time to start the process.

The American Recovery and Reinvestment Act of 2009

Who is Eligible?

La Jolla California Buyers who have not owned a home for the preceding three years.  That means you may still qualify for the tax credit even if you and your spouse owned a La Jolla home more than three years ago. There are some eligibility requirements, so please be sure to talk with your tax professional.

How Much is the Tax credit?

The tax credit is limited to ten percent of the purchase price up to a maximum of $8,000* for a single resident or a married couple filing jointly.

Are There Limits?

The credit is phased out based on your modified adjusted gross income (MAGI). Please talk to your tax professional about your eligibility.

How Does It Work?

The tax credit reduces a your tax bill or increases your refund, dollar for dollar. It is fully refundable, meaning that the credit will be paid out to you, even if you owe no tax or the credit is more than the tax that you owe.  Even better, there is no repayment requirements associated with this incentive if you keep your home for at least three years.

La Jolla Buyers are permitted to claim the tax credit on their 2008 taxes even though the home closing occurs in 2009. A qualified La Jolla uyer may obtain the credit for the 2008 tax year by filing an amended 2008 tax return after closing.  The incentive is for homes that close between January 1, 2009 and November 30, 2009.

Can I use this credit on  Vacation Home?

The Tax credit is available for purchases of principal residences.  Purchases of La Jolla vacation homes and rental property are not eligible.

Additional information can be found at the National Association of Realtors website and can further assist you in clearing up any confusion for Buffalonians.

H.R. 1, the "American Recovery and Reinvestment Act of 2009," passed the House on February 13, 2009, by a vote of 246 - 184. Later that day, the Senate also passed the bill by a vote of 60 - 38. The President signed the bill on February 17, 2009. The bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010.
View how the U.S. House of Representatives voted>
View how the U.S. Senate voted>

The mix of provisions of interest to REALTORS® changed frequently throughout the legislative process, with changes continuing to be made just hours before the measure was released prior to the vote.  In the end, the elements of NAR's housing agenda were included.  Congress and the President have announced that a finance and housing package (including tax provisions) will be the next "big" initiative, so Congress has by no means finished its work as it affects the housing industry and REALTORS®.

The NAR site is full of information of the above details, visit the NAR site for the latest information.