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Level 2
posted Feb 27, 2021 11:42:15 AM

California renter's credit

I moved to CA on June 29, 2020, and stayed in a hotel for the first month while looking for an apartment. I started renting an apartment in August until now. Will the one-month stay in the hotel (July) satisfy the requirement for the half-year rental?

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1 Best answer
Expert Alumni
Feb 27, 2021 2:33:53 PM

There is no disqualification for paying the hotel as rent, it does provide living accommodations, and most pay property tax (if no property tax is paid the credit does not apply)   The law states:

 

"For purposes of this section, “premises” means a house or a dwelling unit used to provide living accommodations in a building or structure and the land incidental thereto, but does not include land only, unless the dwelling unit is a mobilehome. The credit is not allowed for any taxable year for the rental of land upon which a mobilehome is located if the mobilehome has been granted a homeowners’ exemption under Section 218 in that year."

1 Replies
Expert Alumni
Feb 27, 2021 2:33:53 PM

There is no disqualification for paying the hotel as rent, it does provide living accommodations, and most pay property tax (if no property tax is paid the credit does not apply)   The law states:

 

"For purposes of this section, “premises” means a house or a dwelling unit used to provide living accommodations in a building or structure and the land incidental thereto, but does not include land only, unless the dwelling unit is a mobilehome. The credit is not allowed for any taxable year for the rental of land upon which a mobilehome is located if the mobilehome has been granted a homeowners’ exemption under Section 218 in that year."