The tax credit applies to homes that close escrow on or after May 1. The Franchise Tax Board has $200 million to spend. The allocation is divided equally between a new home credit and for first-time home buyers of existing homes.
- $100 million is for first-time home buyers of resale homes.
- $100 million is for buyers of new (never occupied) homes.
That's the new good news. The bad news is the California Home Buyer Tax Credit will be paid out on a first-come, first-served basis. When the money is gone, it's gone. Based on the number of homes presently in escrow and the anticipated activity, the California Association of REALTORS estimates that the new California first-time home buyer tax credit could be depleted before the end of May 2010.
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Technorati tag: california home buyer tax credit
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Comments
If the taxpayer does not owe any California tax they will NOT receive a check for $3,333. The credit is a NONREFUNDABLE credit.
Yes, that is true. Thanks for clarifying that point.
Good article, but I thought the CA tax credit was up to $10,000, not up to 5%. Isn’t it 5% (up to $10,000)?
If you bought a home for $180,000, then the CA home buyer tax credit would be $9,000.
If the taxpayer does not owe any California tax they module NOT acquire a hitch for $3,333. The credit is a NONREFUNDABLE attribute.
Healthful article, but I cerebration the CA tax approval was up to $10,000, not up to 5%. Isn’t it 5% (up to $10,000)?
May 4, 2010 at 12:08 pm
(4) homebuying says:
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rowanat01
It is the lesser of the two. 5% or 10,000. I thought I would just get $3,300 for 3 years but now I found out that that’s not it. How depressing.
I bought a house that closed April 29- sounds like I am screwed for 2010, as well as 2009, for the California tax credit?
Sorry, Buck.
I was checking online I think they are still taking apps since many are duplicates, not completed etc..I out an offer last week for a house and its unders inspection…Can still qualify, First time home buyer
“Important Update (07/13/10): FTB to accept additional First-Time Buyer applications”
Don’t understand why our gov’t wants to help us with tax credit on one side, but also sets so many stupid rules on the other side. My aunt bought her home in first week of May when this credit was still new to many people. She had no knowledge of the 2-weeks rule and her escrow didn’t say a word neither. She only has a W-2 and never needs an accountant to file her tax. By the time she realized she may qualify for the credit, it’s already end of May. I understand why it’s first come first served until credit is exhausted, but why give people only 2 weeks to study?
Your aunt should apply. Last I heard, it was still available. There were a lot of bogus claims and people filed who didn’t qualify.
I just closed escrow, however i made the initial offer on the property prior to April 30th, would that count toward the tax credits?
If you’re talking about the federal home buyer tax credit, as long as you qualify on other criteria and were in contract by April 30th, you very well might qualify for the federal tax credit. For CA, I believe those tax credits are gone.
I qualified for the 2010 first time home buyer tax credit, but do not owe any state taxes. Do I get back what I paid already throughout the year up to $3,333?
I think you are confusing what you owe with what you paid. If you owe no taxes, the state will refund what you paid. The way the tax credit works is you get a refund against the taxes you owe. Whether you qualify for all of it back depends on what your accountant tells you. Unfortunately, I can’t analyze tax situations or give you tax advice.