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Prestige Properties & Finance
2010 California Home Buyer Tax Credit
HOMEBUYER TAX CREDIT
FEDERAL
CALIFORNIA
Amount of Tax Credit
N/A
5% of purchase price, not to
exceed $10,000 for first-time
homebuyers or buyers of
properties that have never been
occupied. (See also Maximum
Credit for All Taxpayers.)
Date of Purchase
N/A
From May 1, 2010 to July 31, 2011,
but an enforceable contract must
be executed by December 31, 2010.
Principal Residence
N/A
Yes. Property purchased must be a
qualified principal residence and
eligible for the homeowner’s
exemption from property taxes (Cal.
Tax & Rev. Code § 218).
Type of Property
N/A
Single-family residence, whether
detached or attached.
Eligibility
N/A
First-Time Homebuyer: Up to
$10,000 if the buyer (or buyer’s
spouse if any) has not owned a
principal residence during the three-
year period before date of
purchase;
OR
2. Never-Occupied Property: Up to
$10,000 for a principal residence if
the property has never been
previously occupied as certified by
the seller.
Income Restriction
N/A
No
Maximum Purchase Price
N/A
No
Refundable
N/A
No
Repayment
N/A
No repayment required if the buyer
owns and occupies the property for
at least two years immediately
following the purchase.
Multiple Buyers
(not married to each other)
N/A
Tax credit must be allocated
between eligible taxpayers based
on their percentage of ownership.
Maximum Credit for All Taxpayers
N/A
100 million for first-time
homebuyers and $100 million for
never-occupied properties, both on
a first-come-first-served basis.
Reservations of Credit
N/A
Yes. Buyer may reserve credit
before close of escrow for a
property that has never been
occupied by submitting a
certification signed by buyer and
seller stating they have entered
into an enforceable contract
between May 1, 2010 and
December 31, 2010, inclusive.
When to Claim
N/A
1/3 of total tax credit may be
claimed each year for 3 successive
years (e.g. $3,333 for 2010, $3,333
for 2011, and $3,333 for 2012).
Tax Agency
N/A
Franchise Tax Board (FTB).
How to File
N/A
Submit application to the FTB to
obtain Certificate of Allocation. The
FTB may prescribe additional rules
and procedures to carry out this
law.
Other Restrictions
N/A
Cannot be an acquisition from
related persons as defined; buyer
or spouse must be 18 years old;
buyer cannot be another taxpayer’s
dependent; credit is allowed for
only one qualified principal
residence; and credit allowed
cannot be a business credit under
Cal. Tax & Rev. Code § 17039.2.
Legal Authority
N/A
Cal. Rev. & Tax Code section
17059.1 (as added by Assembly Bill
183).
Date of Enactment
N/A
March 25, 2010.
More Information
N/A
FTB Web site at
http://www.ftb.ca.gov/individuals/New
_Home_Credit.shtml
Below are the guidelines for the California Home Buyer Tax Credit. The California tax credit covers homes that
close escrow between May 1st, 2010 and 12/31/10 (or once the $200 million allocation runs out). Credits apply to
both 1st time home buyers and existing homeowners (see details below).

Short Description:

California Tax Credit - $10,000 (
Max 5% of home price) for 1st time buyers who buy any home or non 1st time
buyers who buy a
newly built home (described in the tax credit law as "properties that have never been
occupied"). Credit is claimed in 1/3 increments ($3,333.33) for the next 3 years on your state income tax return.

Tax Credit Chart