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ACCOUNTING: Tax credits sought for homebuyers; CPAs push for national certification

California homebuilders want the federal and state governments to create a tax credit for potential homebuyers who are sitting on the sidelines of the residential real estate market.

“The federal government and the state government can’t wait for the spiral to continue in the direction it’s been heading because that begins to have all sorts of economic implications,” said Tim Coyle, chief lobbyist for the California Building Industry Association.

A housing bill passed by the Senate last month included a $7,000 tax credit for buyers purchasing foreclosed homes, but the measure was taken out of a more recent House version after House Financial Services Committee Chairman Barney Frank, D-Mass., likened the credit to “paying a dog to eat a bone.”

But Mr. Coyle said that right now the dogs aren’t eating, and a credit would help counter an overreaction to the market turmoil by potential buyers.

“If there’s a reluctance to come into the market, it’s because folks are fearful about coming in too soon,” Mr. Coyle said. “They want to wait until it hits bottom, but that kind of psychology feeds on itself.”

So far, no state tax credit bills have been introduced, and Gov. Arnold Schwarzenegger has not taken a position on the issue. A spokeswoman said his administration is meeting with housing industry representatives and is considering the credit and a number of other proposals aimed at boosting the market.

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California CPAs are hoping to become part of a national system whereby accountants can work across state lines with minimal paperwork.

The industry is supporting a bill that would make the state’s licensing requirements identical to those in 45 other states. California is one of five states that is still considering the new rules.

The bill, AB 2473, is supported by a number of accounting groups and the California Chamber of Commerce. It is opposed by several unions and the nonprofit Center for Public Interest Law at the University of San Diego School

of Law, which is citing concerns about proper oversight and the more extensive education requirements included in the new licensing rules.

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Do you ever wish you could give the IRS a piece of your mind? If you are a seasoned tax expert, now may be your chance.

The IRS is taking applications for membership in its Advisory Council, a group of up to 30 members who meet in Washington five times a year to discuss tax issues. Members are not paid, but they are reimbursed for travel expenses.

Applications are due June 16. For more information, visit www.irs.gov/taxpros.

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Submit items for this column to William Jason at 707-579-2900 ext. 225, wjason

@busjrnl.com or fax 707-579-8475.