Be
sure to discuss this recently enacted tax credit with your
Deb Howard & Co. buyers agent and your personal tax adviser.
Individuals who purchase a qualified principal residence
on or after March 1, 2009, and before March 1, 2010, and
live in that home for at least two years are allowed a
nonrefundable, noncarryover credit. The credit equals the
lesser of $10,000 or 5% of the purchase price. A qualified
principal residence is a new or previously unoccupied,
single-family (detached or attached) home that qualifies
for the homeowners’ property tax exemption. Also,
the seller must submit a certification that the home was
not previously occupied to both the buyer and the Franchise
Tax Board (FTB) within one week of the sale.
Taxpayers must claim the credit equally over three successive
taxable years, beginning with the taxable year in which
the purchase was made. (SBX2
15; R&TC §17059)
The credit is first come, first serve, and there
is only $100 million available for all taxpayers. Any disallowed
credit will be treated as a mathematical error by the FTB,
so the taxpayer will have no protest or appeal rights.
To get the credit:
The seller must complete Part
I of Form 3528-A,
Application for New Home Credit, certifying that the home
has never been occupied, and provide a copy to the buyer
or escrow person;
The buyer will complete Parts II and III of Form 3528-A;
and
The escrow person, on behalf of the seller and buyer, will
provide a copy to the buyer and fax the completed Form
3528-A to FTB at:
Fax (916) 845-9754
--
Internal Revenue Service Circular 230 Disclosure: Pursuant
to United States Treasury Department Regulations, we
are required to advise you that, unless otherwise expressly
indicated, any federal tax advice contained in this communication,
including attachments and enclosures, is not intended
or written to be used, and may not be used, for the purpose
of (i) avoiding tax-related penalties under the Internal
Revenue Code or (ii) promoting, marketing or recommending
to another party any tax-related matters addressed herein.
The preceding is not intended as legal advice.
|
