Instructions For Form Ftb 3549-A printable pdf download

Instructions for Form FTB 3549-A

Application for New Home / First-Time Buyer Credit

What’s New

General Information

The copy received from the seller or escrow

person does not constitute an allocation of

The New Home/First-Time Buyer Credits

Registered Domestic Partner – For

credit to the buyer; instead the buyer will

are available for taxpayers who purchase

purposes of California income tax, references

receive a letter from the FTB certifying the

a qualified principal residence on or

to a spouse, husband, or wife also refer to

allocation of tax credit. The buyer cannot

after May 1, 2010, and on or before

a California Registered Domestic Partner

claim either credit unless they receive a

December 31, 2010.

(RDP), unless otherwise specified.

Certificate of Allocation from the FTB.

Additionally, the New Home Credit is

Round Cents to Dollars – Round cents to

B Qualifications

available for taxpayers who purchase a

the nearest whole dollar. For example, round

qualified principal residence on or after

$50.50 up to $51 or round $25.49 down

California allows a credit against net tax

January 1, 2011, and before August 1,

to $25.

equal to the lesser of five percent of the

2011, pursuant to an enforceable contract

purchase price of the qualified principal

A Purpose

executed on or before December 31, 2010.

residence or ten thousand dollars ($10,000).

Use form FTB 3549-A, Application for New

Taxpayers may apply for the tax credits if

The credit will not be allocated by FTB if any

Home/First-Time Buyer Credit if you are:

they have entered into a contract before

of the following apply:

May 1, 2010, as long as escrow closes on or

• A seller of a new home which has never

• In the case of the New Home Credit, the

after May 1, 2010.

been occupied and are selling to any

seller does not certify that the residence

individual who purchases the residence

Taxpayers are only allowed one credit. If a

has never been previously occupied.

on or after May 1, 2010, and on or before

taxpayer qualifies for both the New Home

• In the case of the First-Time Buyer Credit,

December 31, 2010.

Credit and the First-Time Buyer Credit, the

the buyer or the buyer’s spouse/RDP,

• A seller of a new home which has

taxpayer will receive the New Home Credit.

regardless of whether the spouse will be

never been occupied and are selling

Each credit is the lesser of five percent of

on title, had an ownership interest in a

to any individual who purchases the

the purchase price of the qualified principal

principal residence during the preceding

residence on or after January 1, 2011,

residence or ten thousand dollars ($10,000).

three-year period.

and before August 1, 2011, pursuant to

The credits are claimed over three

• The taxpayer does not intend to occupy

an enforceable contract executed on or

consecutive years, in equal amounts, against

the home as his/her principal residence

before December 31, 2010.

net tax. They are not refundable, and there is

for at least two years immediately

• A first-time buyer purchasing a principal

no carryover provision.

following the purchase.

residence on or after May 1, 2010, and on

• The taxpayer was allowed a 2009 New

Example: If the taxpayer’s credit for the

or before December 31, 2010.

Home Credit.

taxable year is $3,333, and the tax liability

New Home Credit

• The taxpayer is under 18 years old.

is $300, the taxpayer may only use $300

For homes that have never been occupied,

• The taxpayer or taxpayer’s spouse/RDP is

of the credit and the unused credit may not

the seller first completes Parts II, III, and

related to the seller.

be refunded or carried over to the following

IV of form FTB 3549-A, certifying that the

• The taxpayer qualifies as a dependent of

year.

home has never been occupied. If the buyer

any other taxpayer for the taxable year of

The total allocation amount for each credit

qualifies for the credit, the buyer completes

the purchase.

is capped at $100 million for a total of

the rest of form FTB 3549-A (Parts I, V,

• The application and copy of the properly

$200 million between the two credits. Once

and VI).

executed settlement statement are not

the $100 million cap has been reached,

received within two weeks after escrow

First-Time Buyer Credit

we will no longer accept applications for

closes.

For the First-Time Buyer Credit, the buyer

that credit. Go to ftb.ca.gov and search for

• The application is received before escrow

completes all parts, except Parts III and

new home before completing the application

closes.

IV, of form FTB 3549-A and certifies that

to see if we are still accepting applications.

he/she (and spouse/RDP, if applicable) is an

For two or more taxpayers who are not

Reservations: Taxpayers who qualify for the

individual who has not had an ownership

married/RDP, the credit shall be allocated

New Home Credit may, but are not required

interest in a principal residence during

among the taxpayers who will occupy the

to, reserve a tax credit prior to the close of

the preceding three-year period ending on

home as their principal residence using their

escrow. Reservations will become important

the date of the purchase of the qualified

percentage of ownership in the property. The

as we near the $100 million cap for homes

principal residence. Parts III and IV are not

total credit allocated to all of these taxpayers

that may not close escrow before the cap

required for the First-Time Buyer Credit.

shall not exceed ten thousand dollars

is reached as a reservation will “hold the

($10,000).

New Home or First-Time Buyer Credit

taxpayer’s place in line” until two weeks

Fax a copy of form FTB 3549-A and

The FTB may request documentation to

after escrow closes. Even if you request a

the properly executed final settlement

ensure the parties have complied with the

reservation, you must still complete and

statement (generally the buyer’s final HUD-1

requirements of the credit under Revenue

submit this application within two weeks

statement) to the FTB within two weeks

and Taxation Code (R&TC) Section 17059.1.

after escrow closes. You may not request a

after escrow closes, at 916.855.5577.

reservation for the First-Time Buyer Credit.

Important: Applications received before

For more information about the reservation

escrow closes will be denied.

process, get form FTB 3549-RR, Reservation

Request for New Home Credit. Also, go to

ftb.ca.gov and search for new home.

FTB 3549-A (NEW 2010) (REV 05-10) Instructions Page 1

Instructions For Form Ftb 3549-A

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