Money matters: FTB updates and death deed information.

• Author: Aue, Barbara J.
• Position: CA Tax - Franchise Tax Board

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The FTB Stopped accepting cash payments as of Sept. 1, 2015. Since then it has faced a hardship issue for taxpayers who either have no bank account or are unable to open one.

As of July 1, a taxpayer who needs to pay in cash must obtain and fill in a Mo Cash Policy Exemption Request Form, available at www.ftb.ca.gov/forms/misc/3711.pdf. The form requires disclosure of the nature of the taxpayer's business and the reason the taxpayer needs to pay in cash, and must be signed by the taxpayer, partner, corporate officer or individual holding a power of attorney.

It can be approved at any of the six field offices (Los Angeles, Oakland, Sacramento, San Diego, San Francisco or Santa Ana). Approval after review of the application usually happens within 48 hours.

The taxpayer will have to make an appointment at a local field office to turn over the cash and failure to do so may result in refusal of the cash payment.

This exemption is good for all future cash transactions; however, it does not relieve the taxpayer of the burden of mandatory e-pay when mandatory e-pay is applicable.

Energy Saving Projects Billed Through Property Tax Bills

Some popular government loan programs allow homeowners to finance their home energy improvements through a home energy system loan that may be secured by a lien on the home and paid through a special assessment on the home's property tax bill. Examples of improvements financed through the property assessed clean energy (pace) program include solar panels, roofs, windows, light controls and air conditioning.

California has announced that it is following federal chief counsel advice 201310029, which states that neither the principal nor the interest paid with the property taxes can be deducted as real estate taxes. If the taxpayer qualifies, some or all of the interest may, however, be deductible as home mortgage or home equity interest.

Revocable Transfer on Death Deeds

Effective Jan. 1, California has authorized use of a new type of deed: a revocable transfer on death (TOD) deed. It was intended by the Legislature to be a low-cost alternative to having a lawyer draw up an estate plan.

The process is full of traps for the unwary that make it a rather unattractive option. Included among other provisions:

* The law sunsets Jan. 1, 2021. Repeal is automatic unless the statute is extended by the legislature. Any TOD implemented before a repeal of the law remains valid and revocable.

* Eligible real...