California Joins the Tax Credit Stimulus
March 4, 2009
California has launched it's own $10,000 tax credit for any buyer of a newly constructed home. Needless to say there are some conditions that must be met in order to qualify for this credit.
1. The purchase must be for a primary residence - no second homes or income property.
2. The only eligible property is new construction. The builder must certify that the home has never been lived in.
3. The tax credit equals 5% of the purchase price up to $10,000 ($200,000 purchase price maxes it out).This credit is paid out over three tax years in equal amounts (i.e. $3300 for 2009. etc.)
4. Purchasers must reside in the home at least two years.
5. There is no repayment requirement unless the purchaser sells or rents out the property before the two years are up.
6. The state has allocated $100,000,000 for this program. This works out to 10,000 purchasers that could qualify under this program. Once these funds are used up the program will stop.
7. Within seven days after close of escrow, an application for new home credit (Part I of Form 3528-A) must be completed by the seller certifying that the home has never been occupied and a copy provided to the buyer or escrow holder.
8. In the seven day period, the buyer must complete Parts II & III of Form 3528-A.
9. The escrow person on behalf of the buyer and the seller will FAX the completed Form 3528-A to the Franchise Tax Board at (916)845-9754 and provide a copy to the buyer. FAXING the form is the only way it can be filed.
For more details, go to http://www.ca.gov/ and under the agency list select the Franchise Tax Board.
California has launched it's own $10,000 tax credit for any buyer of a newly constructed home. Needless to say there are some conditions that must be met in order to qualify for this credit.
1. The purchase must be for a primary residence - no second homes or income property.
2. The only eligible property is new construction. The builder must certify that the home has never been lived in.
3. The tax credit equals 5% of the purchase price up to $10,000 ($200,000 purchase price maxes it out).This credit is paid out over three tax years in equal amounts (i.e. $3300 for 2009. etc.)
4. Purchasers must reside in the home at least two years.
5. There is no repayment requirement unless the purchaser sells or rents out the property before the two years are up.
6. The state has allocated $100,000,000 for this program. This works out to 10,000 purchasers that could qualify under this program. Once these funds are used up the program will stop.
7. Within seven days after close of escrow, an application for new home credit (Part I of Form 3528-A) must be completed by the seller certifying that the home has never been occupied and a copy provided to the buyer or escrow holder.
8. In the seven day period, the buyer must complete Parts II & III of Form 3528-A.
9. The escrow person on behalf of the buyer and the seller will FAX the completed Form 3528-A to the Franchise Tax Board at (916)845-9754 and provide a copy to the buyer. FAXING the form is the only way it can be filed.
For more details, go to http://www.ca.gov/ and under the agency list select the Franchise Tax Board.
posted by shirley harry at 8:07 AM
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