Thanks for stopping by - This is a work in progress, so please feel free to jump in with me - any comments, feedback, or participation in the conversation is encouraged! You might want to want to sign up for email updates on the right, or subscribe to my RSS feed. Thanks for visiting!
Glad to have you back - have you considered signing up for email updates on the right, or subscribing to my RSS feed? Thanks for visiting!
Tax Credit Reference Sheet
California Assembly Bill 183
Background
- Part of the Governor’s big Jobs Initiative. This is his #1 priority. Credit for new construction stimulates job creation/preservation, and credit for first time buyers stimulates homeownership.
- Total Availability of funds is $100 Million for new construction AND $100 Million for first-time buyers
Terms
- Lesser of 5% or $10,000k (200k min purchase to maximize claim)
- Must enter contract between May 1-Dec 31 2010
- Credit is received over 3 years, equal installments
Eligibility
- Purchase new construction property OR
- Purchase existing property as a first-time buyer
- First Time Buyer is still defined as having not owned residence for the three years preceding purchase
- If married, filing separately, split allocations
- If unmarried, purchasing together, split according to ownership stake in property
Restrictions
- No income restrictions
- Cannot be a dependent on somebody else’s tax filing
- Cannot purchase from a relative *
- Cannot be under the age of 18
- Cannot have received CA home buyer tax credit from 2009
- 2 year recapture
- If first time-buyer AND new const – new const allocation overrides
Procedures
- Reserve credit by contacting Franchise Tax Board with notice that a contract has been signed (not required)
- Follow-up with FTB within 2 weeks of closing with:
- Settlement statement and cert by seller of non-occupancy (new const)
- Settlement statement and cert by buyer that they are first time buyer
If you have questions about how this might affect your plans to buy or sell a home in California, please email me
* Internal Revenue Code for Family (IRC 267 section (c)(4):
(4) The family of an individual shall include only his brothers and sisters (whether by the whole or half blood), spouse, ancestors, and lineal descendants
*** Please consult with your tax professional for advice specific to your situation!