The California Home Buyers Tax Credit of 2010 is available to California Tax Payers, who purchase a new or existing home between May 1, 2010 and December 31, 2010 and December 31, 2010 and August 31, 2010. The California Home Buyers Tax Credit is available to first time homebuyers and existing homeowners looking to purchase a new or existing home.

 

The California Home Buyers Tax Credit may be used to purchase Single Family Residences, 1-4 unit dwellings, Condominium, Townhome, houseboat, or manufactured home, but the property must remain a primary residence for a minimum of 2 years.

 

California home buyers who elect to file for the California Home Buyers Tax Credit will receive up to $10,000 or 5% of the purchase price, whichever is lower. Payment will be received in the form of 3 consecutive payments during tax season, with a maximum payment amount of $3,333.33. The State of California has set a cap of 100 million for the California Home Buyers Tax Credit. The California Home Buyers Tax Credit will be issued on a first come first serve basis.

 

To qualify for the California Home Buyers Tax Credit, California Tax Payers must Fax the completed form 3549-A along with the final settlement statement to the FTB within 14 days of the close of escrow. Reservations for the California Home Buyers Tax Credit made before the close of escrow will be denied. Form 3549-A parts II, III, and IV must be completed by the seller, parts I, V, and VI must be completed by the buyer. It is recommended that the escrow company fax the form; however the responsibility of requesting the California Home Buyers Tax Credit falls solely on the buyer.

 

To claim the California Home Buyers Tax Credit, the taxpayer must receive a Certificate of Allocation from the FTB on their California personal income tax return. The Certificate of Allocation will state the maximum amount the tax payer can claim by tax year. For married couples or registered domestic partners filing separately, the amount of the California Home Buyers Tax credit will be divided evenly, even if their share of ownership is not equal. For two single people wishing to claim the tax credit together, the amount allocated to each taxpayer occupying the property will be on their respective tax credit allocation letters.