Fill Your California 3528 A Form

The California Form 3528-A is an important document for individuals involved in the sale of a new home that has never been occupied. Along with this form, several other documents are often required to ensure a smooth transaction and compliance with state regulations. Below is a list of commonly used forms and documents that may accompany the California 3528-A form.

• California Form 2009: This is the main tax form used for filing the New Home Credit application. It includes detailed information about the seller, buyer, and the property being sold.
• Escrow Instructions: This document outlines the terms and conditions of the escrow process. It includes the responsibilities of the escrow company and the parties involved in the transaction.
• Title Report: A title report provides information about the ownership history of the property and any liens or encumbrances that may affect the sale. It ensures that the seller has the right to sell the property.
• Property Disclosure Statement: This statement informs buyers about any known issues or defects with the property. Sellers are required to disclose material facts that could affect the buyer’s decision.
• Purchase Agreement: This legal contract outlines the terms of the sale, including the purchase price, closing date, and any contingencies. Both parties must agree to the terms before proceeding.
• Loan Documents: If the buyer is financing the purchase, various loan documents will be required. These may include the loan application, credit report, and lender’s disclosures.
• Homeowner’s Exemption Application: Buyers may need to file this application to qualify for property tax exemptions. It is essential for new homeowners to take advantage of available tax benefits.
• IRS Form 1098: This form is used to report mortgage interest paid by the borrower. It is important for tax purposes and helps buyers keep track of their mortgage payments.
• Closing Statement (HUD-1 or Closing Disclosure): This document provides a detailed breakdown of the closing costs associated with the sale. It outlines all financial transactions that occur at closing.

Understanding these accompanying documents can help ensure that all parties are well-informed and prepared throughout the home buying process. Each document plays a vital role in protecting the interests of both the seller and the buyer. It is advisable to review these forms carefully and seek assistance if needed to navigate the complexities of real estate transactions.

Misconceptions about the California 3528 A form can lead to confusion and potential errors in the application process. Here is a list of ten common misconceptions along with clarifications for each.

• 1. The form is only for first-time homebuyers. Many believe that only first-time homebuyers can use this form. In reality, it is applicable to any buyer purchasing a new home that has never been occupied.
• 2. The credit is automatically applied. Some assume that the tax credit is automatically applied upon purchase. However, buyers must actively apply for the credit using the 3528 A form.
• 3. All buyers must occupy the home. There is a misconception that all buyers listed on the form must occupy the home. Only those intending to live there as their principal residence for at least two years need to be included.
• 4. The credit amount is always $10,000. Many think the credit is a flat $10,000. In fact, it is limited to 5% of the purchase price or $10,000, whichever is less.
• 5. The form can be mailed to the FTB. Some individuals believe they can mail the completed form to the Franchise Tax Board (FTB). The form must be faxed to the designated number within one week after escrow closes.
• 6. The credit can be carried over to future years. There is a common belief that if the credit exceeds the current year’s tax liability, it can be carried over. This is incorrect; the credit cannot be carried over to subsequent years.
• 7. The form is only for single-family homes. Many people think this form applies solely to single-family homes. However, it also includes condominiums, manufactured homes, and other types of residences as long as they qualify as principal residences.
• 8. Only the seller needs to complete the form. Some assume that only the seller is responsible for the form. In reality, both the seller and the buyer must complete their respective parts of the form.
• 9. The credit is refundable. There is a misconception that the credit can be refunded if it exceeds the tax owed. However, this credit is nonrefundable and can only reduce tax liability.
• 10. The form can be completed after escrow closes. Many believe they can complete the form at any time. It is crucial to complete and submit the form within one week of the close of escrow to ensure eligibility for the credit.

How to Use California 3528 A

Filling out the California 3528 A form is an important step in the process of applying for a New Home Credit. This form is essential for sellers of newly constructed homes that have never been occupied. After completing the form, it must be submitted to the appropriate authorities to ensure that all parties involved receive the necessary credits. Here’s how to fill out the form step by step.

1. Part I - Seller’s Certification: Start by entering the seller’s name and identification number. If the seller is an individual, provide the SSN or ITIN. For corporations or partnerships, enter the FEIN or CA Corporation number.
2. Fill in the seller's address, including any suite or room numbers, city, state, and ZIP code.
3. Next, provide the address of the property sold, including the parcel number and county.
4. Certify that the property is a single-family residence that has never been occupied by signing and dating the form.
5. Include the seller’s contact name and telephone number for any follow-up communication.

6. Part II - Escrow Information: Enter the escrow number and the date the escrow closed.
7. Provide the name of the escrow company, the contact person, and their telephone number.
8. List the total purchase price of the property.
9. Indicate whether all buyers will be living in the home as their principal residence by checking the appropriate box. If "Yes," proceed to line 5; if "No," skip to line 6.
10. If "Yes," calculate 5% of the total purchase price or $10,000, whichever is less, and enter that amount on line 5. Skip lines 6 and 7.
11. If "No," calculate the qualified purchase price and enter it on line 6. Then, calculate 5% of that amount or $10,000, whichever is less, and enter it on line 7.

12. Part III - Qualified Buyer’s Information: Complete this section for each qualified buyer. If there are more than three buyers, attach additional copies of Side 2 of the form.
13. For each buyer, print their first name, middle initial, last name, and their SSN or ITIN.
14. Indicate each buyer’s ownership percentage and individual credit amount.
15. Provide the mailing address for each buyer, including city, state, and ZIP code.
16. Each buyer must sign and date the form. If applicable, include the spouse’s or RDP’s information and signature.

Once you have completed all sections of the form, ensure that it is accurate and clear. The escrow person will need to fax the completed form to the Franchise Tax Board (FTB) at 916.845.9754 within one week after the close of escrow. A copy should also be provided to the buyer. Remember, this form is crucial for securing your New Home Credit, so take your time to fill it out correctly.