By Erik Parker
Owning a home for the first time or replacing a previous home is an exciting experience. It also allows a person to establish themselves in a new neighborhood and enjoy the privilege of home ownership. To assist taxpayers in this endeavor the Calif. Legislature enacted a 10k California Tax Credit First Time Homebuyer program.
Applying for a credit can seem very complicated for the average person to understand. In essence, it depends on the property purchase date and the close of escrow. The laws have been changed a number of times and the amount of money available for this credit is limited.
The credit is available for those who have sold a previous residence, which they occupied for three years at least, and are purchasing a different one; one purchasing a newly built home and one who is a first time home buyer in the real estate arena. Dates are essential in completing the paperwork for the credit. There are other restrictions such as the applicant must be over 18 years of age and if a spouse is involved.
A tax credit for this home purchase is allowed for people filing a 2010 CA State Tax Return. It is available for homes purchased on or after May 1, 2010 and before January 1, 2011. If a contract is written on or before December 31, 2010 the taxpayer has until August 1, 2011 to claim the credit. Purchase date is determined by the date the escrow closes.
The California Franchise Tax Board does not accept written applications for this credit. All correspondence must be by fax and must be received within two weeks of the contract closing. Tax credit is allowed for $10,000 or five percent of the purchase price, whichever is less.
A number of different residences qualify for this credit. They include a regular house, houseboat, mobile home, manufactured home, condominium or a unit in a cooperative project. Information and required application papers are available on the Internet. Having all the proper paper work and adhering to the date deadlines is essential if one’s application is to be accepted.
Article kindly provided by UberArticles.com
Topics: Mortgages | Comments Off
MLA Style Citation:
Parker, Erik "Application Requirements About Obtaining 10k California Tax Credit First Time Homebuyer." Application Requirements About Obtaining 10k California Tax Credit First Time Homebuyer. 22 Jun. 2010. uberarticles.com. 29 Dec 2014 <http://uberarticles.com/finance/mortgages/application-requirements-about-obtaining-10k-california-tax-credit-first-time-homebuyer/>.
APA Style Citation:
Parker, E (2010, June 22). Application Requirements About Obtaining 10k California Tax Credit First Time Homebuyer. Retrieved December 29, 2014, from http://uberarticles.com/finance/mortgages/application-requirements-about-obtaining-10k-california-tax-credit-first-time-homebuyer/
Chicago Style Citation:
Parker, Erik "Application Requirements About Obtaining 10k California Tax Credit First Time Homebuyer" uberarticles.com. http://uberarticles.com/finance/mortgages/application-requirements-about-obtaining-10k-california-tax-credit-first-time-homebuyer/
Comments are closed.
Uber Articles and its partner sites cannot be held responsible for either the content nor the originality of any articles. If you believe the article has been stolen from you without your permission, please contact us and we will remove it immediately. If you have a problem with the accuracy or otherwise of the content of an article, please contact the author, not us! Also, please remember that any opinions and ideas presented in any of the articles are those of the author and cannot be taken to represent the opinions of Uber Articles. All articles are provided for informational purposes only. None of them should be relied upon for medical, psychological, financial, legal, or other professional advice. If you need professional advice, see a professional. We cannot be held responsible for any use or misuse you make of the articles, nor can we be held responsible for any claims for earnings, cures, or other results that the article might make.