New CA Tax Credit May Only Last 10 or 20 Days!

Published: April 15, 2010


The $100 million allocated for California’s first-time homebuyer tax credits may be depleted in about 10 to 20 days or sooner, according to C.A.R.’s Economics team.  California’s Franchise Tax Board (FTB) plans to begin accepting applications on May 1, 2010 for tax credits up to $10,000 for first-time homebuyers and for homes that have never been previously occupied.  However, the total tax credit allocation for all taxpayers is $100 million for first-time homebuyers and $100 million for new homes, both on a first-come, first-served basis.

C.A.R.’s forecast of 10 to 20 days to deplete the $100 million allocation for first-time home buyers is based on estimated May sales figures and other parameters.  It does not take into account the possibility that buyers scheduled to close escrow in April may delay closing until May to take advantage of the tax credit.  If a shift in closings from April to May occurs, the first-time homebuyer tax credits may be depleted even more quickly than indicated above.

Applications for the California tax credit must be faxed to the FTB after escrow closes.  The FTB will update its website when the 2010 application form and other information become availablee.

REALTORS® are reminded not to give their clients any tax or legal advice, such as the availability of funds under the California tax credit program.  Agents should encourage their clients to seek specific advice from an accountant, attorney, or other professional as they deem appropriate.

For more information, please refer to C.A.R.’s Homebuyer Tax Credit Chart 2010.

SIGN UP FOR TAX CREDIT WEBINAR: Join us on April 27, 2010 at 1 p.m. for a C.A.R. Legal Live Webinar on the homebuyer tax credit.  In this one-hour session, C.A.R.’s Senior Counsel Stella Ling will discuss the California and federal homebuyer tax credits.  Topics to be addressed will include the eligibility requirements for both tax credits, how quickly California’s $200 million allocation may run out, and potential liability issues for REALTORS®.  Registration is simple, but space is limited, so sign up now at

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
One Agent Got 3 Leads in 5 Minutes – FIND OUT HOW!
Learn the strategy that gave one agent 3 leads in 5 minutes,
plus the automatic followup he applied to capture those
leads and turn them into sales opportunities. Learn How Now
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

This message was sent to [email protected]. Visit your subscription management page to modify your email communication preferences or unsubscribe.

Realegal® is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide.

Edited by: Stella Ling, [email protected]

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020
phone (213) 739-8200; fax (213) 480-7724

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814
phone (916) 492-5200; fax (916) 444-2033

To view C.A.R.’s Privacy Policy click on this link:

If you wish to update the email address to which this newsletter is sent, please do not reply to this email.
E-mail address change requests must be directed to your local association.

To contact C.A.R., click on this link:

Written inquiries regarding Realegal® should be directed to Stella Ling, [email protected].

Last modified: April 15, 2010 at 2:40 pm | Originally published: April 15, 2010 at 2:40 pm
Printed: September 21, 2020