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

  • 1. 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
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. 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
  • 17. 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
  • 18. 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