California Franchise

California Franchise Tax Board FTB California Tax credit unfair practice for First time home owner. garden grove, California

21st of Jan, 2011 by User517340

On March 26, 2010, AB 183 was passed by the legislature on March 22 and gives the Franchise Tax Board authority to extend a total of $200 million in tax credits to California homebuyers; The credit will be extended from May 1, 2010 to December 31, 2010. The tax credit will be available to buyers on a first-come, first-served basis and is applied in equal amounts over a period of three taxable years. Yet the AB does not say a limit 14 days after the closing of escrow. At that time most people believe that it would be the same as IRS Credit for first time home owner. I bought my first home and closed escrow account on 05/19/2010. My realtor as well as the escrow employees did not know about this 14 days limit. No body told me about that until I visited FTB website on 06/07/2010. Even though, it was late 5 days, I faxed my application on that day. And my application was denied. There is only Website of FTB saying about this limit. The time from the date signed by Governor Schwarzenegger to the date my escrow closed was too short to spread the information of the 14 days limit imposed by FTB. I believe it is unfair and unethical practice. It is unfair because it is not a first-come, first-served basis as the law said. I submitted application and bought a house first, but my application was denied because 14 day limit. Whereas, other homeowners bought a house after me and submitted application after mine, but their application were approved. FTB should announce clearly and widely on radio, TV, not only on its website and should allow the time enough for the information reach the recipients.
FTB should do more and clear because normal people may assume it is the same as IRS. I believe that FTB law of 14 day limitation is not a mirror of Governor Schwarzenegger mind. If you visit this web site on 03/26/2010 you can see no info about 14 days limit law of FTB.

FTB 14 days annoucement
http://www.ftb.ca.gov/individuals/new_home_credit.shtml?WT.mc_id=HP_Feature_HomeCredit_Hed

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