Georgia Real Estate Voice

 Home Buyer Tax Credit Extended and Expanded FAQ- I've broken down the Frequently Asked Questions regarding the Home Buyer Tax Credit. I hope it helps. This credit is effective for homes purchased between December 1, 2009 and April 30, 2010.  If you have additional questions please feel free to contact me.

• How much can I get? The Credit is for 10% of the purchase price up to $8000 for First Time Home Buyers and $6500 for People who have previously owned a home.  So for example, First Time Buyers if you buy a $70,000 home you may be eligible for a $7000 tax credit.

• Do I have to be a First Time Home Buyer? No, Trade in or Move up Buyers get the benefit this time too.

• How does it work for people who already owned homes? If you have owned your home and it has been your main residence for 5 of the last 8 years, then you are eligible for up to a $6500 tax credit.

• When does the credit expire?  Both the $8,000 first-time home buyer tax credit as well as the $6,500 tax credit for “move-up” buyers would sunset (or end) on April 30, 2010.

• What if I am under contract but I haven't closed on the property by April 30, 2010?  Individuals who have contracts as of April 30, 2010, would still qualify for the credit so long as they complete the transaction within 60 days, by June 30, 2010.

• What are the income limits? $125,000 for an individual, $225,000 for a married couple for both credits.

• Is there a limit on the cost of the home I purchase?  The cost of the home being purchased may not exceed $800,000 in order to be eligible for the credit. (Feel free to still purchase those homes, you just won’t get the home buyer tax credit for it.)

• When can I make the claim? For purchases made in 2010, taxpayers would be able to claim the tax credit on their 2009 income tax return.

• Do I have to repay it? Home buyers would not have to repay the credit, provided the home remains their principal residence for 36 months (3 years) after the purchase date. However, this recapture provision would not apply in the case of a member of the Armed Forces, military intelligence or Foreign Service who is on qualified official extended duty.

• If I am in the military and deployed overseas, how do I take advantage of this tax credit? First of all, thank you to our military. We appreciate you! Members of the military who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2011 to claim the home buyer tax credit.

• How is fraud going to be prevented? The amendment also includes anti-fraud language that gives the IRS the authority to do greater oversight during the processing of the return rather than waiting for an audit situation. The amendment requires the taxpayer claiming the credit to be 18 or older, and requires a HUD-1 settlement statement to be attached when claiming the credit.

If you are thinking of buying or selling real estate in or around Decatur, GA contact Realtor Jen Bowman, Broker Associate & e-PRO with Success Realty at 404-456-5024.  Homes currently on the market intown Decatur range in price from $89K to $1,500,000. There really is something for everyone.

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I took this picture the other day as we saw 9 deer coming out of the woods to graze in a field at a National Park. It reminded me of the Home Buyers that seem to be coming out of the woods now and are realizing that now is a great time to buy  GA real estate with low prices and the available tax credits.

The deadline is fast approaching, it's December 1, 2009 for the Federal Tax Credit and November 30, 2009 for the State of GA's tax credit. If you are a 1st time Home Buyer you can take advantage of the $8000 tax credit.

Home Buyers in GA, not just 1st Time Buyers, including investors can take advantage of the $1800 tax credit.

If you are thinking of buying or selling real estate in or around Atlanta, GA contact local expert and Realtor Jen Bowman, Broker Associate & e-PRO with Success Realty at 404-456-5024.

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On May 11, 2009 Governor Sonny Perdue signed House Bill 261 creating a Georgia Income Tax Credit for the purchase of a home.

• Credit is limited to eligible purchases made between June 1, 2009 and November 30, 2009.
  
• The credit created by HB 261 can be claimed one time per taxpayer and is completely independent of the federal first time home buyer tax credit. 
• Maximum benefit of the tax credit is $1,800 or 1.2 % of the purchase price (whichever is less) spread over three years.
• This is not for first time home buyers only.
• This is for investors as well as owner occupied homes.

Home Buyers now have the opportunity to enjoy benefits of both a state $1,800 and a federal $8,000 home buyer tax credit. If you are planning to buy a home in the near future in GA, buy before November 30th and take advantage of this tax credit.

Learn more about HB 261, click here.

Learn more about the $8,000 Federal Tax Credit.

If you are ready to buy a home in the metro Atlanta area, contact me, Jen Bowman, Realtor and Broker Associate with Success Realty at 404-456-5024. 

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There seems to be a lot of misinformation floating around with real estate agents and home buyers on the 2009 Federal Tax Credit of $8000. Here's some of the most commons questions.

Who Qualifies?

• Single people earning less than $75,000 modified adjusted gross income
• Married people earning less than $150,000 a year combined modified adjusted gross income
• First Time Home buyers or people that have not owned a home in the past 3 years
• Investors do not qualify

 When do I have to purchase by? 

• Homes must be purchased and closed by December 1, 2009.

 What kind of home can I buy? 

• Any kind of home, single family, town home, condo, manufactured homes and multifamily as long as it's owner occupied

Do I have to repay the $8,000?  

• There is no payback required if you stay in the home as your primary residence for 3 years. 

What if I'm buying this home with someone else?

• If you are married you both have to be first time home buyers
• If you are not married, only 1 person has to be a first time home buyer, the first time home buyer can claim it on their taxes.

What if we make more than $150,000?

• If you make more than $150,000 there is a phase out portion for couples that earn up to $170,000 a year. So for example, if you earn $160,000 a year you could qualify for half the credit of $4,000.

 Can I use it for down payment?

• This is not a down payment assistance program. You must still come up with your down payment of at least 3.5%.

What if I don't normally owe $8,000 in taxes?

• If your normal tax liability for the year is for example $5,000, you would still get the $8,000 credit.

How is the credit determined?

• The tax credit is equal to 10% of the purchase price to a maximum of $8,000. So, if you buy an $80,000 home, you'd get $8,000. If you buy a $150,000 home you'd get $8,000. If you buy a $50,000 home you'd get $5,000 which is 10% of the purchase price.

I hope that answers some questions.

If you are thinking of buying or selling a home in or around Atlanta, contact local expert Jen Bowman, Realtor and Broker Associate with Success Realty. 404-456-5024.

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There seems to be lots of questions on the $15,000 tax credit for home buyers. It isn't officially a law yet, but the Senate did approve an Amendment that would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit, whichever is less. To break it down, if you’re buying a $150,000 home or above you could get a credit of $15,000. If you’re buying a $100,000 home you could get a tax credit of $10,000.

Current law provides for a $7,500 tax break but only for first-time home buyers. The new law would be available to all buyers of a primary residence. Purchases must be made within 1 year of the legislation’s enactment, and the tax credit would not have to be repaid. It also seeks to prevent misuse by only allowing purchases of a primary residence and by recapturing the credit if the home is sold within two years of purchase.

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If you are thinking of buying or selling a home, contact local expert Jen Bowman, Realtor and Broker Associate with Success Realty serving the real estate needs of Decatur and Metro Atlanta, GA. 404-456-5024