As of May 1, 2010 the California New Home and First Time Home Buyer Credit began. The First Time Home Buyer credit will go at a seriously brisk pace, so you better get your forms in on time as escrow closes. For New Home buyers, it will be a bit slower, but you can also reserve your request for credit.
Everyone has been anticipating the credit, now it comes down to following guidelines, filling in the paperwork correctly, having the appropriate items and then faxing to the correct number where your paperwork will receive a time and date stamp for first come first serve. You will then wait 3-6 months for your official answer from the Franchise Tax Board.
The FTB said “we must build a new computer system before we begin verifying the applications and reservation requests.”
Okay, after that shocking revelation, let’s get down to business. Here’s how to apply for your tax credit:
Apply
Within two weeks (14 calendar days) after the close of escrow:
- The seller must complete Parts II, III, and also Part IV (if the home has never been occupied) of Form 3549-A, Application for New Home / First-Time Buyer Credit, and provide a copy to the buyer or escrow person.
- The buyer will complete Parts I, V & VI of Form 3549-A.
- Fax the completed Form 3549-A and the final settlement statement (generally the buyer’s HUD-1 statement) to FTB at 916.855.5577.
- Fax is the only delivery method as the date and time stamp on the fax will determine the order in which credits are allocated.
- Fax only one completed application per residence with all qualified buyers listed.
- Do not fax the application to FTB before escrow closes.
- The buyer keeps a copy of the completed Form 3549-A for their records.
- Use the online fillable Form 3549-A. Simply fill in all required information, print the form, and sign.
FAQ on California Tax Credit – read all the questions and comments for the past month as we’ve built up to this moment
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found your site on del.icio.us today and really liked it.. i bookmarked it and will be back to check it out some more later
great info and may I reiterate that there are some great benefits for first time home buyers in California. that tax credit is great too
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