California New Home Tax Credit 2010
California Tax
Credit Extended
to December 31,2010!
Key Information:
AB183 was passed by the legislature on March 22,1 20 that gave the Franchise Tax Board authority to extend a total of $200 million in tax credits to California homebuyers.
$100 million for buyers of New, Unoccupied Homes
- $100million for first-time buyers of existing homes. (As of July 15th most of this fund has been reserved)
The New Home Credit is limited to the lesser of 5% of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of #3,333/per year) begriming with the tax year in which the homes is purchased.
What is a Qualified Principal Residence?
- Must be a single family residence, either detached or attached. It can be a single family homes, a condominium, a unit in a cooperative project, a house boat, a manufactured home or a mobile home.
- The home must have never been occupied. The seller must certify that the home has never been occupied in order for a taxpayer to received an allocation of the credit.
- Be eligible for the California property tax homeowners's exemption*
- Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.
Who will not Qualify?
- Someone who was allowed a 2009 New Home Credit
- Taxpayers who are under 18 years old
- Taxpayers who are related to the seller.
- Taxpayers who qualifies as a dependent of any other taxpayer for the tax year of the purchase.
*** This is just a summary and does not contain all of the material relating to the California Tax Credit. To get more information and a list of frequently asked questions, please go to this link: http://www.ftb.ca.gov/individuals/new_home_credit.shtml
