Georgia Real Estate Voice: Home Buyer Tax Credit Extended and Expanded FAQ

 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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