CA renters credit

[superman]

To all CA prepares.....Client rents a space for mobile home and wants to claim the renters credit. Previous preparer amended returns to do this but, I could not find anything in the FTB website that said either yes or no to this sitution.

Does anyone have any experience with this and if so can you direct me the spot to find the answer. Thanks for your help.

Superman

[S T]

Ca Renters Credit and Mobile Homes

There is two types of licensing/registration on Mobile/Manufactured Homes in California.
Here is an excerpt: Property Tax or VLF

A manufactured home first sold before July 1, 1980, is subject to an annual vehicle license fee (VLF), unless it has been installed on a foundation system or it has been voluntarily converted to local property taxation. The license fee consists of a tax paid in lieu of a property tax, based on the home's value as established by law, plus a registration fee. The Department of Housing and Community Development is responsible for setting and collecting the VLF. If you allow the VLF fees to become delinquent for 120 days or more, you will be assessed a penalty of $50 per transportable section, and a lien will be placed on your home in favor of the state.

If a manufactured home is either first sold on or after July 1, 1980, or if it is on a permanent foundation system, the home is subject to local property tax. The tax is based on the home's assessed market value, and local county officials are responsible for determining and collecting it. Mobilehome accessories (awnings, cabana, carports, etc.) are also subject to local property taxes regardless of whether the home is subject to property taxes or the VLF.

So, to answer your question on the Calif Renter's credit, if the t/p meets the income limitations, and the mobile home is under the license fee (VLF) through the Dept of Housing, AND paying space rent, the t/p would qualify for the non refundable renters credit. If t/p's mobile/manufactured home is on the property tax rolls through the Calif County Assessor's office, then you would be able to include for an added deduction to the standard deduction in 2008 or claim property tax on Schedule A.

Here is the link to the Renters Credit Questionnaire from the 540 Instruction Booklet http://www.ftb.ca.gov/forms/2008/08_540bk.pdf see page 58, item 3

Sandy

[dsi]

Great cite, Sandy. However, are you suggesting that one cannot get the renters credit if one rents space for their mobile home and if they pay property taxes to the county (barring the new above the line property tax deduction)?

[S T]

Clarify

From Calif R & TC Renters Credit Section 201095

Taxpayers who receive a homeowner's exemption on their property tax statement for the year do not qualify for the credit. Taxpayers who pay property tax and do not receive a homeowner's property tax exemption may qualify for the credit if they otherwise meet the requirements.

Rented Land: Rented land does NOT qualify for the renter's credit unless the dwelling is a mobile home and the owner of the mobile home did NOT claim a homeowner's exemption on their property tax statement.

Sandy