San Francisco Gets Stung Again: Condo Conversions DO NOT Qualify For Tax Credit

This came through the internets to us, and we thought we’d share:

New Home Buyer Tax Credits-Condo Conversions do NOT qualify

If you handle “New Home” transactions you are impacted by California SB 15, which was passed as part of the California budget and effective March 1, 2009. It provides for a tax credit of up to $10,000 for people who buy a previously unoccupied home and agree to live there for two years.

Update: Condo conversions do NOT qualify since they have previously been occupied.

[Our source] spoke to someone at the Franchise Tax Board today and she confirmed that this is the case. She says they are still working on a validation process, but thought that there were enough inquiries on this issue that they would do something to filter out these applications.

Poor San Francisco. We get the short end of every stick, don’t we?

Leave a Reply