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Home Dec
New $10,000 Home Buyers Credit For CA Homeowners
If you are ostensibly bankrupt, does a $10,000 credit sound like good news? You bet. Unless of course you are the state government that is exhibiting all signs of bankrupt status and you are giving away another home buyers credit to homeowners in the state. The CA governor has signed another home buyers credit bill which doesnt make a whole lot of sense for CA from a financial standpoint.
The new (some say extension of the 2009 new home credit) bill, AB 183 will provide $200 million for home buyer tax credits, allocating $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes.
The eligible taxpayer who purchases a qualified personal residence on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchases a qualified principal residence on and after Dec. 31, 2010, and closes the sale before Aug. 1, 2011, will be able to take the allowed tax credit.
The credit is equal to the lesser of 5 percent of the purchase price or $10,000, in equal installments over three consecutive years. Purchasers will be required to live in the home for at least two years or forfeit -repay the credit. (Before acting on this preliminary information for the tax credit, one should first consult your legal/tax professional.)
This isnt a terrible bill except for the opening statements about the financial health of CA government.
California has a $20.7 billion deficit in the general fund budget over the next 16 months and owes $8.8 billion in short-term loans that have to be paid off by June. There is an additional $120-plus billion in outstanding bonds and interest that will be paid over decades. The states pension fund, CalPers, has $16.3 billion more in liabilities than assets plus California also faces a $51.8 billion for the health and dental benefits of state retirees and future retirees.
In truth, California has the lowest credit rating of any state in the nation, just above junk bond status. One major problem is the rise in Californias debt-service ratio (DSR). That is, the ratio of annual general fund debtservice costs to annual general fund revenues and transfers. This is often used as one indicator of the states debt burden. The higher it is and more rapidly it rises, the more closely bond raters, financial analysts, and investors tend to look at the states debt practices, and the more debtservice expenses limit the use of revenues for other programs.
Debt servicing is projected to comprise 9% of general fund revenues by the end of 2014-15. According to Bloomberg News, the market believes a developing country like Kazakhstan, with about 15.7 million people, is less likely to default on its debt than California, which is the eighth largest economy in the world.
Plus, what is the real cost to the state of California? In the past, the Federal government talking about the federal home tax credit and the cash for clunkers program said both those programs (cash for cars & homes) were very popular. Well duh! Anyone out there who does not want free money? So, another two well run government programs. Can you imagine if you ran your personal finances like this?
Most people who have no cash and a bucket full of financial woes dont go around doling out promises of money. Why is CA for doing it?
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My girlfriend is in basic training and graduates on Dec.17, does she get to come home for christmas?
She goes to AIT at a different base. Will she get to come home for christmas before going to AIT? And if so how long does she get to come home?
Depends on how much Leave time she has accumulated, and the Date AIT starts. And how much travel time they allow between basic and AIT.
Ask her parents. Or ask HER.
Luciano Becchio