The 2010 California New Home \/ First-Time Tax Credits are now available on a first come, first served basis. If you are unsure of how to apply, if you qualify to apply or what the tax credit could mean to you, I have prepared the following summary and provided the necessary links for your review.<\/p>\n
Here is a summary of the 2010 California Tax Credit:<\/p>\n
1. The purchase of a qualified principal residence on or after May 1, 2010 and on or before December 31, 2010 and close escrow before August 1, 2011, pursuant to a contract executed on or before December 31, 2010, on a first come, first served basis or until the allocation of $200,000,000 is exhausted in accordance with terms of this legislation. (It is likely that the allocation of tax credit will be fully claimed prior to the time limits described above!)<\/p>\n
2. Up to $10,000 of California Tax Credit, per qualified purchaser, to be allocated over three years, beginning with the year the escrow closes on the new home.<\/p>\n
3. The total allocation of $200,000,000 in tax credits is divided between first time home buyers and purchasers of new homes, with $100,000,000 being allocated to each type of purchaser.<\/p>\n
4. The reservation of a tax credit may be achieved by submitting a jointly signed certification to the Franchise Tax Board (FTB) at the time of execution of the contract to purchase. The FTB has created the necessary forms (Form 3549-A is to be used for New Home and First-Time Buyer tax credit applications after the close of escrow. Form 3549-RR is to be used by buyers of a new home, requesting a reservation of a tax credit.) The procedures for claiming the reservation of the tax credit and the allocation of a tax credit are further explained on the FTB web site.<\/p>\n
5. A \u201cqualified principal residence\u201d is an attached or detached home that will be used as the principal residence of the purchaser, and has either never been occupied or is purchased by a first time home buyer.<\/p>\n
6. A \u201cfirst time home buyer\u201d is and individual who has no present ownership interest in a principal residence now or over the three previous year period, ending on the date of purchase.<\/p>\n
7. The tax credit is non-refundable, meaning it is a use it or lose it credit. You would need to have $3,333 of state tax liability each of the next three years to utilize the maximum amount of the credit available.<\/p>\n
8. The amount of the tax credit is the lesser of 5% of the purchase price or $10,000, which means any home over $200,000 in price will be limited to the $10,000 credit.<\/p>\n
9. You must be 18 years of age and not claimed as a dependent on someone else\u2019s tax return to be eligible to claim this tax credit.<\/p>\n
10. For the answers to more specific questions, try the FAQ set up by the FTB for this Tax Credit.<\/p>\n
Credit: http:\/\/blog.brookfieldsd.com\/the-2010-california-tax-credit-is-up-and-running\/<\/p>\n","protected":false},"excerpt":{"rendered":"
The 2010 California New Home \/ First-Time Tax Credits are now available on a first come, first served basis. If you are unsure of how to apply, if you qualify to apply or what the tax credit could mean to you, I have prepared the following summary and provided the necessary links for your review. […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-69","post","type-post","status-publish","format-standard","hentry","category-real-estate-news-tips"],"_links":{"self":[{"href":"https:\/\/jurus.net\/juliemeggat\/wp-json\/wp\/v2\/posts\/69","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jurus.net\/juliemeggat\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jurus.net\/juliemeggat\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jurus.net\/juliemeggat\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/jurus.net\/juliemeggat\/wp-json\/wp\/v2\/comments?post=69"}],"version-history":[{"count":0,"href":"https:\/\/jurus.net\/juliemeggat\/wp-json\/wp\/v2\/posts\/69\/revisions"}],"wp:attachment":[{"href":"https:\/\/jurus.net\/juliemeggat\/wp-json\/wp\/v2\/media?parent=69"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jurus.net\/juliemeggat\/wp-json\/wp\/v2\/categories?post=69"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jurus.net\/juliemeggat\/wp-json\/wp\/v2\/tags?post=69"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}