Sacramento CA home loans, real estate loans, home finance information – The West Team

Kirk M West's Blog

April 22nd, 2009 11:41 PM

An exciting new tax credit was signed into law recently. Any buyer who on or after March 1, 2009, and before March 1, 2010, purchase a principal residence that has never been occupied may qualify for the credit. Here are some major facts about the credit:

The buyer must reside in the new home for a minimum of two years immediately following the purchase date.

• California allows qualified new home buyers a total tax credit amount equal to either five percent of the purchase price or $10,000, whichever is less.

• Taxpayers must apply the total tax credit in equal amounts over three successive taxable years (maximum of $3,333 per year) beginning with the taxable year (2009 or 2010) in which the new home is purchased.

• The State of California has allocated $100,000,000 for this tax credit.

• Credit allocations will be made on a first-come, first-served basis. Once $100,000,000 has been

allocated, the tax credit will no longer be available.

• Applications must be filed no later than 7 days after the close of escrow.

• If all guidelines are met, the credit does NOT have to be repaid.

• The CA credit can be combined with the Federal $8,000 tax credit.

• Applications for the allocation of credit will be accepted by fax only (916.845.9754), starting March 1, 2009. I have attached a copy of that form here for convenience. Click Here

You may contact the Franchise Tax Board by phone or email for more information:

Phone:         888.792.4900 (press 5)

                      916.845.4900 (not toll-free)

Email:           wscs.gen@ftb.ca.gov (Do not send confidential information via email)

If you would like more information about how this exciting tax credit can help you or your clients please give me a call.

Posted by Kirk M. West on April 22nd, 2009 11:41 PMPost a Comment (0)