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A Complete Guide to the 2010 California Homebuyer Tax Credit
 

A Complete Guide to the 2010 California Homebuyer Tax Credit

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A Complete Guide to the 2010 California Homebuyer Tax Credit

A Complete Guide to the 2010 California Homebuyer Tax Credit

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    A Complete Guide to the 2010 California Homebuyer Tax Credit A Complete Guide to the 2010 California Homebuyer Tax Credit Presentation Transcript

    • The Facts About The $10,000 California Homebuyer Tax Credits We will begin in a moment Online Class & Discussion Brought to you by Broadview Mortgage Katella Branch 1-866-667-6724
    • California $10,000 Tax Credit Facts
      • The Purpose and Goals of this Class
      • Purpose: To Educate and Empower Home Owners
      • Goal: Eliminate confusion and misinformation about qualifying for and claiming the CA Tax Credit
      • Goal: Arm you with a complete understanding of ALL of your Tax Credit Options – Fed & CA
      • Goal: Leave you more informed about the landscape of today’s real estate market so you can make informed decisions
    • California $10,000 Tax Credit Facts
      • Topics We Will Cover In This Class
      • Two Tax Credits in One
      • A Tale of Two Qualifying Guidelines
      • Ticking Time lines and Availability of Funds
      • How Credit is Calculated and Claimed
      • Double Dip Delight – Fed & State Sweet Spot
      • Ineligible for Tax Credit if…..
      • Wrap up and Take Aways
      • Questions & Answers Period
    • California $10,000 Tax Credit Facts
      • Questions and Answers
      • You may type questions in at any time during the presentation – Questions Box on your screen
      • Home Buying experts are available to answer questions throughout presentation
      • This is an interactive learning environment. You will get the most value by having your specific questions answered
      • The only dumb question is the one you don’t ask
      • Write number down now in case you get disconnected
        • 1-866-667-6724
    • California $10,000 Tax Credit Facts
      • Two Tax Credits in One
      • $200,000,000 Available for California Homebuyers
      • $100,000,000 Available for “New” Home Buyers
        • Extension of previous tax credit
      • $100,000,000 Available for “Existing” Home Buyers
        • Expanded beyond terms of previous tax credit
      • Different Reservation Guidelines
      • Different Qualifying Guidelines for Each
    • California $10,000 Tax Credit Facts
      • A Tale of Two Qualifying Guidelines
      • NO First Time Homebuyer Requirement if Buying New Construction
      • First Time Homebuyer Requirement if Buying Existing Home
      • First Time Homebuyer Definition: Buyer must not have interest in a principle residence within the past 3 years
      • A First Time Homebuyer that is also purchasing New Construction will receive credit from “New” home allocation – IMPORTANT
    • California $10,000 Tax Credit Facts
      • Ticking Time Lines & Availability of Funds
      • Must Purchase (Close Escrow) After May 1 st , 2010 and Before December 31 st , 2010
      • Or enter into an Enforceable contract executed on or before December 31 st , 2010 and Closes by August 1 st , 2011
      • Reservations are taken on first-come-first-served basis
      • Previous Tax Credit funds lasted only 3 months before exhausted
    • California $10,000 Tax Credit Facts
      • Ticking Time Lines & Availability of Funds
      • AFTER the $100 Million is reserved – Get on the waiting list
      • Many tax payers will not use full $10,000 credit
      • Allocation of Tax Credit is reduced to 70% of available for New Construction
      • Allocation of Tax Credit is reduced to 57% of available for First Time Homebuyers
      • Waiting Buyers notified by December 31 st , 2011
    • California $10,000 Tax Credit Facts
      • How Credit is Calculated
      • Tax Credit earned is the lesser of 5% of the purchase price or $10,000
      • $200,000 purchase price for full $10,000 tax credit
      • Home must be primary residence
      • Single family attached or detached homes only
      • Credit paid back if you sell or move before 2 years
      • Credit is paid in 3 yearly installments of up to $3,333
    • California $10,000 Tax Credit Facts
      • How Credit is Calculated
      • Single or Joint Taxpayers due full credit
      • Married filing separate returns split credit
      • Tenants in Common credit split based on ownership
      • Claimed on a timely filed original return for the year purchased
      • Exception is credit reserved but escrow not closed until after December 31 st , 2010 – Amended OK
    • California $10,000 Tax Credit Facts
      • How Credit is Claimed
      • Reservation of tax credit requested by application to the Franchise Tax Board under penalty of perjury
      • “ New Home” - Builder / Seller must provide a joint certification that home has never been previously occupied
      • Reservation may be submitted for “New” construction homes in contract but not yet closed
      • Reservations for First Time Homebuyers CANNOT be made until after close of escrow
    • California $10,000 Tax Credit Facts
      • How Credit is Claimed
      • Taxpayer submits form certifying First Time Homebuyer status with proof of purchase
      • Proof of purchase (Settlement Statement) must be submitted within 2 weeks of close of escrow to be awarded credit
      • Credit is not “Refundable” as is the Federal Tax Credit
      • You WILL NOT receive a credit, carryover or check for any unused portion of this tax credit
    • California $10,000 Tax Credit Facts
      • How Credit is Claimed
      • “ The tax credits cannot reduce regular tax below the tentative minimum tax (TMT)”
      • Consult your Tax Professional about AMT
    • California $10,000 Tax Credit Facts
      • Double Dip Delight – Fed & State Sweet Spot
      • It is possible to claim both $8,000 federal tax credit AND CA State credit
      • Must be First Time Homebuyer or Buy “New” if not
      • Must enter into enforceable contract by April 30 th , 2010 and close escrow by June 30 th , 2010 for Federal
      • Must close after May 1 st , 2010 for CA State credit
    • California $10,000 Tax Credit Facts
      • Ineligible for Tax Credit if…..
      • You’ve already claimed a CA Tax Credit
      • Taxpayer is under 18 years old at Purchase
      • If Taxpayer was claimed as a dependant for any other tax payer for the taxable year of the purchase
      • If Home is purchased from relative – Non arms length
      • or if Home is purchase from a spouse’s relative
    • California $10,000 Tax Credit Facts
      • Wrap Up and Take Aways
      • Last tax credit ran out in 3 months – New Homes
      • Get on Waiting List for $7,000 “New Home” Credit
      • Get on Waiting List for $5,700 “FTHB” Credit
      • Tax Credit Reservations can be made with executed contract if buying New Construction
      • Tax Credit DOES NOT mean you will pay NO State Tax – Alternative Minimum Tax may still be owed
      • Tax credit is NOT automatic – Must submit request within 2 weeks of close of escrow
    • California $10,000 Tax Credit Facts
      • Wrap Up and Take Aways
      • We are a direct Lender that specializes in CalSTRS, CalPERS, CalHFA, FHA, VA, USDA and Community based down payment assistance programs
      • Give us an opportunity to earn your trust if you have not already chosen a lender
      • We are more than happy to be your “second opinion” if you are already working with someone
      • We can recommend a qualified Real Estate Agent in your area that shares our values and expertise
      • We are committed to educating and empowering homeowners - Please join us for other classes
    • Thank You for Attending If you enjoyed this class – Tell a friend 
      • Please tell us how we’re doing
      • Thank You email includes a link to “Praise” page
      • Your feedback is greatly appreciated
      • For more information
      • 1-866-667-6724
      • Homeownership Educator
      • Scott Schang
      • Branch Manager
      • Broadview Mortgage Corporation