More good news for local home buyers. Governor Perdue signed the Georgia Homebuyer Tax Credit yesterday, which will offer up to $1,800 in tax credits to Georgia homebuyers.
We initially covered the basics of the Georgia Homebuyer Tax Credit back in March when the initial HB 261 was passed by the House and sent on to the Senate. The next homebuyer tax credit update in April provided the revamped and final version details that was passed by both the House and Senate.
Now that the governor has signed the bill, the Georgia Homebuyer Tax Credit details include:
1. The tax credit applies to single-family homes and condos if purchased as your primary residence.
2. The property must be for sale prior to the effective date (May 11, 2009) and still for sale after the effective date, or
3. The property must be in default on or before March 1, 2009 or has already been foreclosed and is held by the mortgagor.
4. The tax credit is effective for homes meeting the above criteria purchased between June 1st to November 30, 2009.
5. The tax credit is limited to 1.2% of the purchase price or $1,800, whichever is less.
6. Now the tricky part. You can only claim, at most, one third of the tax credit in any one year, beginning with your 2009 tax return.
7. One final important caveat. If you’re purchasing a home, be sure to request a copy of the necessary documents to maintain for your tax records to document how the home qualified for the tax credit, whether it be because it was listed prior to the effective date or perhaps because it was delinquent or had been foreclosed.
With the addition of the $8,000 first-time homebuyer tax credit, homebuyers can now get up to $9,800 as an incentive for purchasing a home.
Here are some homes that will qualify for $9,800 in tax credits:
- 116 Rondak Circle, Smyrna, GA 30080
- 5394 Highland Pine Lane, Mableton, GA 30126
- 1160 Newpark View Place, Mableton, GA 30126
- 5339 Saint Martins Court, Mableton, GA 30126
- 1208 Bickham Way, Smyrna, GA 30080
If you have any questions or want to take advantage of the Georgia home buyer tax credit and the federal first-time homebuyer tax credit, be sure to contact us.
Technorati Tags: home buyer tax credit, Smyrna real estate, Vinings real estate
My mother just purchased a home and it does qualify for the tax credit. My question, though, is how exactly will this tax credit work? Will it just be a credit to reduce income taxes owed? What if your aggregate gross income is zero? Will she still be able to collect 1/3 of the amount over three years?
If she does not have taxable income in Georgia, then the credit will be carried forward. This is not like the first-time homebuyer tax credit that is rebateable to the buyer when the file their taxes.