$10000 tax credit from May 1

NEW -> Contingent Buyer Assistance Program
Seems like what you are saying makes perfect sense. Lets wait and see. It clearly defines the purchase date as the date when escrow closes.

If you are worried that the date will be so far that they will run out the 100 mil reserved for your category then you can send a contract copy signed
on or after may 1st to reserve you spot in the credit line. If you don't care about that reservation and want to wait till your escrow close then you purchase
on the date of escrow close and send the credit request.


Blueberry East said:
I'm still not sure if you can combine CA and federal tax credit.  We'll know for sure on Tuesday when FTB updates the web site.

From the bill (see the link from wbbuyer) it is clear that in order to reserve the tax credit you have to buy on May 1 or later. But it also states that this reservation step (1) is optional  (useful when you want to be on top of the waiting list). Only step (2) is mandatory. And (4) specifies the purchase date as close of escrow.

(c) (1) (A) A taxpayer may, but is not required to, reserve a
prior to close of escrow for the purchase of a qualified
principal residence that has never been occupied.
...
(2) No credit shall be allowed under this section unless the
taxpayer submits to the Franchise Tax Board, within two weeks
after the date of the purchase of the qualified principal residence,
a copy of the properly executed settlement statement ...

(4) A qualified principal residence is purchased on the date on
which escrow closes with respect to the purchase of the qualified
principal residence.
Click to expand...
 
fe9000 said:
Yeah, I am afraid waitin4ever is correct.  There may be some clarifications coming out from OC Register.  Here is another link that I found.
http://www.cbia.org/go/cbia/government-affairs/homebuyer-tax-credit/homebuyer-tax-credit-faq/

One of the FAQ:

How does a homebuyer qualify?
Once a customer signs a contract to purchase a home, they are allowed to reserve a tax credit provided the contract is entered into on or after May 1. The state?s Franchise Tax Board (FTB) allocates the credits on a first-come, first-served basis. The homebuyer may submit a certification to the FTB upon entering into a sales contract, and must submit a properly executed settlement statement to the FTB within two weeks of close of escrow. In order to receive the tax credit, escrow must close no later than Dec. 31, 2010, unless a credit has been reserved prior to that date, in which case the home must close escrow before Aug. 1, 2011.
Click to expand...

Wait a minute!  I thought you had to CLOSE after May 1st, not enter into a Contract after May 1st....I'm confused.
 
anyone know of any updates on this issue or is it resolved.


ajw522 said:
fe9000 said:
Yeah, I am afraid waitin4ever is correct.  There may be some clarifications coming out from OC Register.  Here is another link that I found.
http://www.cbia.org/go/cbia/government-affairs/homebuyer-tax-credit/homebuyer-tax-credit-faq/

One of the FAQ:

How does a homebuyer qualify?
Once a customer signs a contract to purchase a home, they are allowed to reserve a tax credit provided the contract is entered into on or after May 1. The state?s Franchise Tax Board (FTB) allocates the credits on a first-come, first-served basis. The homebuyer may submit a certification to the FTB upon entering into a sales contract, and must submit a properly executed settlement statement to the FTB within two weeks of close of escrow. In order to receive the tax credit, escrow must close no later than Dec. 31, 2010, unless a credit has been reserved prior to that date, in which case the home must close escrow before Aug. 1, 2011.
Click to expand...

Wait a minute!  I thought you had to CLOSE after May 1st, not enter into a Contract after May 1st....I'm confused.
Click to expand...
 
waitin4ever said:
anyone know of any updates on this issue or is it resolved.


ajw522 said:
fe9000 said:
Yeah, I am afraid waitin4ever is correct.  There may be some clarifications coming out from OC Register.  Here is another link that I found.
http://www.cbia.org/go/cbia/government-affairs/homebuyer-tax-credit/homebuyer-tax-credit-faq/

One of the FAQ:

How does a homebuyer qualify?
Once a customer signs a contract to purchase a home, they are allowed to reserve a tax credit provided the contract is entered into on or after May 1. The state?s Franchise Tax Board (FTB) allocates the credits on a first-come, first-served basis. The homebuyer may submit a certification to the FTB upon entering into a sales contract, and must submit a properly executed settlement statement to the FTB within two weeks of close of escrow. In order to receive the tax credit, escrow must close no later than Dec. 31, 2010, unless a credit has been reserved prior to that date, in which case the home must close escrow before Aug. 1, 2011.
Click to expand...

Wait a minute!  I thought you had to CLOSE after May 1st, not enter into a Contract after May 1st....I'm confused.
Click to expand...
Click to expand...
I read through the bill...nowhere does it state that you have to enter contract after May 1st...you just have to close after May 1st.
 
Does the current Fed credit count as a 2009 Credit? There is verbiage in there that you can't have got one of those but I think it's referring to the 2009 CA Credit.
 
fe9000 said:
ajw522 said:
pete423 said:
http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml

"The purchase date is defined as the date escrow closes."
Click to expand...

OK, thanks for clearing everything up....looks like I qualify.
Click to expand...

Yes you do.  And we will too, it just we will have to delay closing...
Click to expand...
FE, if you read the bill...you have to be a "first time homebuyer" and the definition of that is that you have not owned a home in the past 3 years from the closing date (I don't want you to pay a penalty to delay your closing if you won't get the tax credit).  Read the Bill carefully just to make sure.
 
Blueberry East said:
Here is an interresting article for those worried about the expiration of the federal tax credit.

Quote:
"If you look at it objectively, it would be an absolute disaster to end the tax credit on schedule and it's likely to be extended again. The problem is that no one in Washington can say that because the whole point of the credit is to spur sales and move buyers off the sidelines, and so we continue on with a comical "It's really gonna end this time! I mean it!" routine every few months until it's extended again"
http://www.walletpop.com/blog/2010/03/30/why-the-first-time-homebuyer-tax-credit-will-be-extended/
Click to expand...
The chances of it getting extended again are very low this go around.  Sure it's possible, but with all the talk about budget deficits I don't think it'll happen (at least I hope it doesn't get extended).
 
I think the chances are pretty good considering we have mid-term elections this year and it doesn't look like we've used up all of the bailout "money":
http://www.ocregister.com/news/billion-68031-ocprint-treasury-government.html

And while there is some confusion about being able to double-dip with the CA credit, if the Fed extends theirs and doesn't put any restrictions regarding CA... the opportunity to double-dip increases.

Question: Why aren't you guys mad about this newest bailout? Where is this money coming from? Wouldn't you rather see it go towards all those teachers being laid off in California... or trying to relieve our debt?
 
FE, if you read the bill...you have to be a "first time homebuyer" and the definition of that is that you have not owned a home in the past 3 years from the closing date (I don't want you to pay a penalty to delay your closing if you won't get the tax credit).  Read the Bill carefully just to make sure.
[/quote]

Wait, isn't this a credit for New Home or First Time Home Buyer?  For us, it would be for the New Home Credit and not the first time home buyer credit. 
 
fe9000 said:
FE, if you read the bill...you have to be a "first time homebuyer" and the definition of that is that you have not owned a home in the past 3 years from the closing date (I don't want you to pay a penalty to delay your closing if you won't get the tax credit).  Read the Bill carefully just to make sure.
Click to expand...

Wait, isn't this a credit for New Home or First Time Home Buyer?  For us, it would be for the New Home Credit and not the first time home buyer credit. 
[/quote]
Here is even more clarification:

"Additionally, the New Home Credit is available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010.  The purchase date is defined as the date escrow closes." 

So it looks like you have to close on your new home from 12/31/10 to 8/1/11.
 
"These tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, the New Home Credit is available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010.  The purchase date is defined as the date escrow closes."

You have to read the first sentence(like what BE said)...I believe this means that BOTH tax credits will be available from May 1st to Jan 1, but then, on Jan 1, the first-time homebuyer credit expires, but the new home credit stays until August 1, I believe.
 
The bill says that
The tax credit may not reduce regular tax below TMT.
I guess that means a lot of people can't get the full 10k due to AMT triggered by $3333/year credit

 
irvinehomeowner said:
Question: Why aren't you guys mad about this newest bailout? Where is this money coming from? Wouldn't you rather see it go towards all those teachers being laid off in California... or trying to relieve our debt?
Click to expand...

I'm very mad about this CA credit.  I would rather have the teachers.  WhereTF are they getting this $200M?
 
freedomcm said:
irvinehomeowner said:
Question: Why aren't you guys mad about this newest bailout? Where is this money coming from? Wouldn't you rather see it go towards all those teachers being laid off in California... or trying to relieve our debt?
Click to expand...

I'm very mad about this CA credit.  I would rather have the teachers.  WhereTF are they getting this $200M?
Click to expand...

I can't say that I am mad, but very surprised with this credit.  I do agree that there are better use with this money like you said the teachers, education, or relieve debt.  However, to the people that needs job in the construction field, they will say otherwise.  Perhaps they are looking at what to do with the money that will have the most short term impact.  Again, I am not agreeing with this credit just saying.  And now to think of it, if we take advantage of this but only able to get 70% of it and paying penalty and lock extension.  Not sure if it's worth it.
 
I don't think you can double dip on the New Home Credit based if you are trying use a reservation:
Reservations: Taxpayers who qualify for the New Home Credit may, but are not required to, reserve a tax credit prior to the close of escrow. Reservations will become important as we near the $100 million cap for homes that may not close escrow before the cap is reached. To reserve a tax credit, the taxpayer and seller need to complete, sign, and submit to us a reservation request to certify that they have entered into an enforceable contract on or after May 1, 2010, and on or before December 31, 2010. A copy of the signed contract must be included with the reservation request. We will post the reservation form and details about the process by May 1, 2010.
Click to expand...
.... since the Fed credit requires you to have a signed contract by April 30. However, if you are not using a reservation, I think you can use your close of escrow date as your contract date and if you can close by June, you may be able to double dip.

It's so confusing.
 
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