California-Taxes: New Home Credit

The Franchise Tax Board (FTB) has issued an update on the estimated application and reservation requests received for the New Home Credit.  As of May 24, 2011 the FTB has received 21,390 ( up from 21,250 as of May 17) resevation requests and 31,280 (up from 31,110) applications.  This is different from the federal because there was no seperate application.  The FTB will stop accepting applications when it has received sufficient applications to allocate the full $100 million.  This is different from the federal because there was no limit.  New homes closing escrow in 2011 are only eligible for the New Home Credit if the is purchased pursuant to an enforceable contract executed on or before December 31, 2010.  This is different from the federal which ended April of 2010.  Claimants should continue using the 2010 forms for homes purchased pursuant to an enforceable contract in 2010, but closing in 2011.  Taxpayers who applied or the New Home Credit for a purchase that closed escrow in 2010 and have not yet received a determination from the FTB, may either:  get an extension to file their tax returns(to avoid penalties and interest, compute and pay any balance due as if their application will not be approved) or file now, but do not claim the credit (if their application is approved they may then file an amended return).  This process is different from the federal New Home Credit because you apply for the credit when you file your taxes.  If you do not have the correct documentation or if there is an audit your credit may be denied,

Comments

  1. TaxseerNovember 1, 2019 at 11:52 PM

    Thanks again for all the great information…I am grateful! 1099 C Form Online. You can clearly explain about it.

    ReplyDelete

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