More over, limited time offer till April 30, 2010, if you are a first-time buyer and purchase a brand new home, you can qualify for up to $18,000 both Federal and CA tax credit for 2010.
California Franchaise Board has published 2010 California Home Buyer Tax Credit Guidelines, please see below for summeries:
HOMEBUYER TAX CREDIT CALIFORNIA
Amount 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.)
From May 1, 2010 to July 31, 2011, but an enforceable contract must be executed by December 31, 2010.
ResidencyYes 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 Single-family residence, whether detached or attached.
Eligibility . 1. 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;
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 No
Maximum Purchase Price N/A
Repayment No repayment required if the buyer owns and occupies the property for at least two years immediately following the purchase.
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 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 Full tax credit may be claimed on 2009 or 2010 tax returns. 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 Franchise Tax Board (FTB).
How to File 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 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 26 U.S.C. section 36. Cal. Rev. & Tax Code section 17059.1 (as added by Assembly Bill 183).
Date of Enactment March 25, 2010.
More Information FTB Web site at http://www.ftb.ca.gov/