State of California $10,000 "New Home" Buyer Tax Credit

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Information about State of California $10,000 "New Home" Buyer Tax Credit
Real Estate

Published on February 21, 2009

Author: porchlightscott

Source: slideshare.net

Description

On February 20th, 2009 the State of California passed a new budget which amends the State Tax Code to include a $10,000 tax credit for the purchase of a "New Home".

A new home is simply one that has never been lived in before and certified by the builder/seller as such. With no first time homebuyer or income restrictions this tax credit is a welcome incentive to California home buyers and to those that also qualify for the Federal Tax Credit brings the total incentive for buying a home in the next year to $18,000!

A Complete Guide to the State of California $10,000 “New Home” buyer Tax Credit Passed with budget on Feb. 20 th , 2009 This notice brought to you by Broadview Mortgage Corporation 1-866-667-6724

CA - $10,000 “New Home” Buyer Tax Credit Added into the budget at the last minute as a compromise for legislators unwilling to raise taxes Signed into law and amends Section 17059 of the California Tax Code effective immediately Must purchase a “New Home” certified by the builder to have never been lived in Must purchase on or after March 1 st , 2009 and before March 1 st , 2010 No first time homebuyer restrictions No income restrictions There are no requirements that you use the builder’s lender or sales agent to claim this credit

Added into the budget at the last minute as a compromise for legislators unwilling to raise taxes

Signed into law and amends Section 17059 of the California Tax Code effective immediately

Must purchase a “New Home” certified by the builder to have never been lived in

Must purchase on or after March 1 st , 2009 and before March 1 st , 2010

No first time homebuyer restrictions

No income restrictions

There are no requirements that you use the builder’s lender or sales agent to claim this credit

CA - $10,000 “New Home” Buyer Tax Credit Tax Credit earned is the lesser of 5% of the purchase price or $10,000 $200,000 purchase price for full $10,000 tax credit Home must be primary residence Credit paid back if you sell or move before 2 years $100,000,000 maximum allocated for this credit Distributed on a First Come – First Serve basis At max credit paid – 10,000 “New Home” buyers Credit is paid in 3 yearly installments of $3,333 Single or Joint Taxpayers due full credit Married filing separate split credit Joint tenancy credit split based on ownership

Tax Credit earned is the lesser of 5% of the purchase price or $10,000

$200,000 purchase price for full $10,000 tax credit

Home must be primary residence

Credit paid back if you sell or move before 2 years

$100,000,000 maximum allocated for this credit Distributed on a First Come – First Serve basis

At max credit paid – 10,000 “New Home” buyers

Credit is paid in 3 yearly installments of $3,333

Single or Joint Taxpayers due full credit

Married filing separate split credit

Joint tenancy credit split based on ownership

CA - $10,000 “New Home” Buyer Tax Credit How to Claim the Tax Credit Builder / Seller must provide a certification that home has never been previously occupied to both buyer and franchise tax board within 1 week of purchase Taxpayer must include this certification with the timely filing of an original tax return Unsure if amended tax returns are eligible Tax credit may not be claimed until 2009 if so “ The Franchise Tax Board may prescribe rules, guidelines, or procedure necessary or appropriate to carry out the purposes of this section, including any guidelines regarding the allocation of the credit allowed under this section”

How to Claim the Tax Credit

Builder / Seller must provide a certification that home has never been previously occupied to both buyer and franchise tax board within 1 week of purchase

Taxpayer must include this certification with the timely filing of an original tax return

Unsure if amended tax returns are eligible

Tax credit may not be claimed until 2009 if so

“ The Franchise Tax Board may prescribe rules, guidelines, or procedure necessary or appropriate to carry out the purposes of this section, including any guidelines regarding the allocation of the credit allowed under this section”

For more information 1-866-667-6724 or email me at [email_address] Educating and Empowering Homeowners to make financially sound and informed decisions about homeownership

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