Deadline for claiming Home Buyer Credit

For those who wish to claim the first-time homebuyer credit, the deadline for closing, or going to settlement, on a principal residence you purchased is June 30, 2010.

In addition, you must have entered into a binding contract to buy the residence on or before April 30, 2010.


The maximum credit amount available is $8,000 for a “first-time homebuyer” for a buyer who has not owned a primary residence during the three years up to the date of purchase.



There’s also a credit of up to $6,500 for “long-time residents” who buy a new principal residence. To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.



The credit is reduced or eliminated for higher-income taxpayers, based on modified adjusted gross income.

For more information on qualifying for and claiming the credit, please refer IRS website on the First-Time Homebuyer Credit.

[All the information are taken from the IRS and topic related other websites]

New Home Buyer Credit for California State (publication 3528)

New Home Buyer Credit

Same way as Federal (Form 5805), California government do support New Home Buyer Credit in current tax year.

If you receive a Certificate of Allocation from the California Franchise Tax board, then you are eligible for claiming new home buyer credit.

This credit is a non-refundable credit. And will reduce your tax amount

If you can qualify for this credit, you can claim this credit on your Form 540 or Form 540NR. You can use code "219" for new home buyer credit in the given credit code to claim this credit. [As most of the Tax software company will put automatically if you qualify.]

Government Instructions are saying as below for Home Credit.

Home Credit – For taxable years beginning on or after March 1, 2009, and before March 1, 2010, a home credit against net tax will be allowed for the purchase of a never been occupied home in an amount equal to
the lesser of five percent of the purchase price of a qualified principal residence or ten thousand dollars ($10,000).

So, The lesser of 5% of the purchase price of a qualified principal residence or $10,000. The credit is taken equally over three years.

[For more information see California FTB publication 3528]