The Vote Is Friday September 11

By Tina Stern

The California legislature is voting on Friday September 11, 2009 to renew the California $10,000 home buyer tax. It is widely believed that an extension will be approved. The credit applies to newly constructed, previously unoccupied homes. Condominium conversions also qualify. Californians do not need to be first-time home buyers to take advantage of the credit; nor do they need to meet income requirements.

Requirements For The Credit

1. The home must be a “qualified principal residence” as defined under California Revenue and Taxation Code Section 17059(b)(1).   The home must:

• Be a single-family residence, whether detached or attached.
• Never have been previously occupied.
• Be occupied by the taxpayer for a minimum of two years.
• Be eligible for the property tax homeowner’s exemption under California Revenue and Taxation Code Section 218.

2. For over three successive taxable years, the total credit allocated among owners that occupy the home must not exceed $10,000. (Multiple qualified buyers that occupy the home will be allocated credit based on the amount paid and their percentage of ownership.)
3.  Any credit that reduced tax on a tax return must be repaid if the buyer does not occupy the home for at least two years immediately following the purchase date.

4.  FTB may request documentation to ensure buyers have complied with the requirements of the credit.

To learn more visit New_Home_Credit.shtml

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