This excerpt taken from the PCG 10-K filed Feb 24, 2009.
customary (as defined by local title company) closing costs paid by the buyer in your new area with the following limitations: the LESSER of actual costs covered by policy or two and one-half (2.5) percent of the purchase price of your new home. Tax Assistance is provided. Points are excluded from tax protection. See Tax Summary. Some items have a dollar limit. See the worksheet in your packet for this information. Concessions in a buyer's market are not considered customary. One hundred percent equity reinvestment is assumed. Ownership with other than a Spouse/Domestic Partner may not qualify for this assistance. Consult with Relocation Services.
Note: Credits from the seller will be deducted from the reimbursement.
In addition to this limit a home inspection is required and is not subject to 2.5% limit.
You must be a homeowner at the time of hire to be eligible for this assistance. A list of customary reimbursable items appears on page 43. You have one year from the effective date of hire to request reimbursement.
Remember to plan to have the necessary cash available to cover closing costs as they are reimbursed after the close of escrow.
Interim financing for the construction of a new home is excluded from the program. Only the final loan is eligible for consideration. If you plan to construct a new home, you are encouraged to review the reimbursement procedure with Relocation Services. Employees who have a home constructed are limited to the same overall 2.5 percent maximum reimbursement. If you choose non-conventional financing consult with Relocation Services to determine your eligibility.
It is important to note that points are subject to withholding taxes and are not tax protected. However, they may be deductible for tax purposes as an itemized deduction. See Tax Summary.
The sale of your former home and the purchase of your new home may have varying income tax consequences.
Most of the assistance outlined in this handbook may be considered taxable and must be reported to the Internal Revenue Service. Therefore, you will be taxed on it in the year in which it is