Oakville Properties Blog
How Does The California New Home Tax Credit Work?
By:
Aaron Wheeler
Posted:
3/7/2009 12:19:15 PM
Tags:
taxes, legal
For the period from March 1, 2009 to February 28, 2010, inclusive, a taxpayer who purchases
a "qualified principal residence" that has never been occupied may receive a tax credit of
5% of the purchase price or $10,000, whichever is less. The
total new home tax credit for all taxpayers is $100 million. The new home credit is available to qualified buyers regardless of income.
The purpose of the new home credit is to help boost the sale of new-home purchases to
stimulate the housing market and construction industry.
The law pertaining to the new home credit was enacted on February 20, 2009 and went into effect immediately. The law will be repealed on December 1, 2013 (Cal. Rev. & Tax Code § 17059(h)). The time frame, however, for a buyer to purchase a qualified principal residence to receive the new home credit is March 1, 2009 to February 28, 2010, inclusive (Cal. Rev. & Tax Code § 17059(a)(1))
What is a qualified principal residence? A qualified principal residence is a property purchased between March 1, 2009 and February 28, 2010, inclusive, that meets the following requirements:
- It is a single-family residence (attached or detached);
- It has never been occupied ;
- It is purchased to be the principal residence of the taxpayer for at least two years immediately following the purchase date; and
- It is eligible for the homeowner?s exemption under section 218 of the California Taxation and Revenue Code.
(Cal. Rev. & Tax Code § 17059(b)(1) and (3).)
Is a taxpayer who receives an $8,000 federal tax credit as a first-time homebuyer also eligible for the $10,000 new home credit under California law? Yes. A first-time homebuyer as defined can potentially qualify for both the $8,000 tax credit under federal law as well as the $10,000 new home credit under California law.
What is the purchase date for purposes of the new home credit? According to the Franchise Tax Board (FTB), the purchase date is the date escrow closes. As an example, if a taxpayer enters into a contract to buy a qualified principal residence on February 25, 2010, but does not close escrow until April 10, 2010, the taxpayer will not qualify for the new home credit because, as the law is currently written, the new home credit expires on February 28, 2010.
Where can I get more information about the new home tax credit? This law pertaining to the new home tax credit is set forth at section 17059 of the California Revenue and Taxation Code. The full text of this law is available at the California Legislative Counsel website at www.leginfo.ca.gov.
The Franchise Tax Board may prescribe rules, guidelines to carry out the purposes of this law (Cal. Rev. & Tax Code § 17059(f)). It provides additional information on its website at www.ftb.ca.gov/individuals/New_Home_Credit.shtml. Instructions are also available on the Instructions for 3528 A attached to Form FTB 3528 A, Application for New Home Credit. The FTB will also issue a Publication 3528 for instructions on claiming the new home credit (to be published by December 2009).
Thanks to the California Association of Realtors Legal team for their assistance in compiling this information. The information contained herein is believed accurate as of March 6, 2009. It is intended to provide general answers to general questions and is not intended as a substitute for individual legal advice. Advice in specific situations may differ depending upon a wide variety of factors. Therefore, readers with specific legal questions should seek the advice of an attorney. Please contact me for more information.
Dine About Town Returns To San Francisco For 2009
By:
Aaron Wheeler
Posted:
1/22/2009 11:13:50 AM
Tags:
dining, food, travel, san francisco
Dine About Town is back in San Francisco for 2009. From January 15th through January 31st,
many restaurants (including some really top notch restaurants, like Town Hall) are offering
special three-course, prix-fixe menus. Lunch is available for $21.95 and dinner for $34.95.
Prices are per person and do not include beverage, tax, or gratuity. Please ask for the official
Dine About Town menu when you are seated.
To view a complete list of participating restaurants and make reservations online via OpenTable,
please click here. You are also welcome to submit
a request at our Concierge Desk
and we would be delighted to make recommendations.
New, Interactive Market Research System Now Available
By:
Aaron Wheeler
Posted:
1/21/2009 8:59:06 PM
Tags:
market research, announcements, san francisco, silicon valley, napa valley, pebble beach, las vegas
It has been a little while since my last post, but many exciting things have been going on behind the scenes. One of these is our new, interactive Market Research system, which I am pleased to announce today.
Market data is updated once per week and is currently available for the San Francisco Bay Area and
Las Vegas markets. Here is how it works:
- Select the city you are interested in
- Choose the statistic you are interested in receiving data on. You can choose from a wealth
of options including average price, median price, inventory, new listings, listings sold,
square feet, price per square foot, age, days on market, Market Action index (indicating hot
or cold markets), percentage relisted, percentage price decreased, and percentage price increased.
- Choose between single family residences, condos, or both.
- Decide which price quartile you are interested in reporting on. Options include all quartiles, top 25%,
upper-middle, lower middle, and bottom.
Once you select all of the attributes, a chart will be displayed on the screen (similiar to the chart that appears above for the Palo Alto median price trend for single family residences.) If you would
like to automatically receive weekly updates on the market areas that you are interested in, there
is a button to sign up for complimentary reports.
While much of the market data is not favorable at the moment, there will be no sugar-coating here -
it is important to me that we keep you up to date on current market conditons so that you can make
informed decisions.
Top Listing: St. Regis Residences, San Francisco
By:
Aaron Wheeler
Posted:
12/21/2008 11:26:52 AM
Tags:
luxury, san francisco, hotel residences, st regis residences san francisco,
Talking about the "top" seems to be in fashion. There are shows for Top Chefs, Top Models,
and more. Not to be left out, I'm going to start a new weekly feature called "Top Listing".
Here is how it works: Each week, I am going to pick a community, or a luxury hise rise
building, and feature the most expensive listing currently available, talk about what you
get for the investment, and discuss the market trends.
There is a certain glitz and glamour associated with hotel living, and hotel residences
certainly are of appeal. So, for the pilot espisode, I am going to start with the St.
Regis Residences in San Francisco.
The top listing for this luxurious hotel residence tower is unit #31B which is currently
offered for, at the time of writing, $2,698,000. Major props to Robyn Kaufman at Pacific Union for the
fabulous listing. [Editorial comment: If your listing is featured here, this is not
intended to be a solicitation for that listing. It is intended to educate our fine readers about opportunities in the San Francisco luxury real estate market]
This corner unit has 2 bedrooms, 2.5 bathrooms, and approximately 1,731 square feet of
living space. The open floor plan has gorgeous western views, a gourmet kitchen with
Poggenpohl cabinetry, gas cooktop, and convection oven, large master bedroom dressed in
Merbau hardwoord floors, limestone capped window ledges, custom shutters and custom paint,
and a grand master bathroom all dressed up in Carerra marble. You can view a
slideshow
online.
Residents enjoy their own exclusive lobby. Service in the cutting edge residential
tower is forward thinking and individualized with impeccable attention to detail.
Residents have direct access to the hotel, Ame restaurant, and hotel lounge. For more
information about the fabulous amenities of the St. Regis Hotel, San Francisco, please see my
previous article
discussing the hotel.
The discussion would not be complete without doing a little financial analysis on
the property. Take a look at the chart below showing the price trend for the top
quartile of the condo market in the South of Market area of San Francisco:
This area has certainly taken a dip
in this challenging economic environment, and the high-end luxury market certainly has
not been spared.
There have been eight (8) sales in the building this year with an average price of
$2,689,375. The lowest price sale was $2,100,000 for unit #25F and the highest price sale was $3,950,000 for
unit #33A. The two most recent sales for B units are #37B (slightly smaller with
1,639 sq ft) selling for $2,500,000 and #22B (slightly larger with 1,805
sq ft) selling for $2,600,000. Both units sold in July 2008.
To learn more about this fabulous property, or to schedule a private showing, please
contact me.
Test Driving The Audi R8 At DRIV Luxury Car Club
By:
Aaron Wheeler
Posted:
12/15/2008 11:17:34 AM
Tags:
luxury, cars, san francisco
There is a saying: "If it appreciates, buy it. If it depreciates, lease it." There is no
greater example of this than when it comes to exotic cars - they are habit forming not to
mention expensive and the car will depreciate faster than some hedge fund portfolios. Think about this -- If one were to pursue their investment portfolio the same as when buying an exotic car, said portfolio would always be in the red. How does that make sense? Luckily there's a support group for those who enjoy the ride but aren't fans of the financial hangover, and
it's called the DRIV Luxury Car Club in San Francisco. I recently had the opportunity to meet with Brad Johnson, Managing Partner, to test drive the latest additional to their portfolio, the Audi R8.
Audi has incorporated the name and the genes of the five-time Le Mans winner, the Audi R8,
into a spectacular sports car. It is a fascinating driving machine and the pinnacle of the Audi brand. The mid-mounted 420 hp V8 engine, quattro permanent all-wheel drive and Audi
Space Frame aluminum body form the basis for truly outstanding driving dynamics. Even at
first glance, the performance caliber of the car is plain to see. The Audi R8 sits wide
and low on the road, the strongly accentuated rear end appearing to flex its muscles like
a sprinter anticipating the strike of the starter pistol against the blank. Behind the doors,
a large-surface "sideblade" air deflector sweeps between the wheel arch and the roof section, delivering air for the V8 to breathe as well as for cooling. The paint finish of the sideblade is coordinated with the body color or can be finished in a beautiful tapestry of carbon fiber as has been optioned on the DRIV Mugello Blue R8 which is one of only four in the country with the sandstone tan leather interior (as of mid-November). When viewing the car from the rear, the observer looks through tempered glass directly at the V8 - the very high
revving heart of this dynamic sports car. Indirect engine compartment lighting by white LEDs bathes the handcrafted engine in an otherworldly glow reminiscent of the Doc Brown "Back to the Future" Delorean ... but much cooler. The performance figures are equally impressive: the R8 accelerates from a standstill to 60 mph in 4.4 seconds and reaches a top speed of 187 mph ... that is Ferrari hunting territory at approximately two-thirds of the price.
The range of optional extras leaves virtually nothing to be desired. A Bang & Olufsen
sound system, featuring an output of 465 watts and 12 specially designed speakers, delivers
surround sound of the highest standard. A microphone-based vehicle noise compensation system adjusts audio levels to changing road conditions and speeds. The acoustic parking
system and a rear-view camera (think targeting display from a Star Wars X-Wing fighter)
help the driver to maneuver into even the tightest of spaces. The radio/navigation system,
featuring a large-format color monitor and MMI keypad, combines extensive functionality
with extreme user-friendliness.
Brad asked me to pass along to our readers that for a limited time, you can choose any
membership level and get double the driving time. Select the $8,000 Introductory Membership
and get between 12 and 20 driving days or the $15,000 Leisure Membership and get between
25 and 44 driving days. This puts you behind the wheel of the Audi R8 for under $600 per day.
And yes, complimentary days for extended reservations are still included further driving
down your overall cost allowing even more seat time. For more information, contact
Brad at (866) 539-8680 or visit www.clubdriv.com.
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