Are you planning to buy a home in Georgia sometime soon? If so, you may want to act now - or at least before November 30, 2009!
On Monday, May 11, Governor Sonny Perdue signed the Georgia Homebuyer Tax Credit Bill into law, enabling all homebuyers who purchase a home between that date and November 30, 2009, to be eligible to receive a credit on their state taxes. This is for all homebuyers, not just first-time homebuyers!
Though not nearly as exciting as the $8,000 Federal First-Time Homebuyer Tax Credit, the state tax credit is still a breakthrough - proving once again there has never been a better time to buy a home! The government is basically paying you to buy a home!
There are a few things you need to know, however, to be sure that you are eligible for the credit. The follow single-family structures (including townhomes and condominiums) are eligible for the tax credit:
"a) Any residence (including a new residence, one occupied at the time of sale, or a previously occupied residence) that was must have been for sale prior to May 11, 2009 and that remained for sale after May 11, 2009; or
b) A residence with respect to which a foreclosure event has taken place and which is owned by the mortgagor or the mortgagor's agent; or
c) An owner-occupied residence with respect to which the owner's acquisition indebtedness was in default on or before March 1, 2009." (from the Georgia Department of Revenue Informational Bulletin CRED-2009-05-19 Eligible Single-Family Residence Tax Credit)
Because the purpose of this tax credit is to reduce existing housing inventory, the date the property was listed and the amount of time it has been on the market is very important. In order to be eligible for the credit, you must purchase a home that was on the market prior to the bill being signed into law and remained for sale after that date. Your REALTOR® can help you to determine whether the homes you are looking at are eligible.
The tax credit is worth 1.2% of the sales price, to a maximum credit of $1,800, spread evenly over three years' taxes. For example, if you purchase a home for $150,000, then your credit would be $1,800.00. Meaning you will get (if you file the correct paperwork at tax time next year!) $600 per year on the next three years' taxes, the maximum amount allowed under the law. Purchase a $100,000 home and your credit will be $1,200.00, equaling $400 per year for three years. Purchase a $300,000 home and you would still receive the maximum amount, etc.
And don't forget, if you are a first-time homebuyer, this state tax credit is in addition to the $8,000 Federal First-Time Homebuyer Tax Credit.
If you have any questions about buying a home in Georgia, please give The Gebhardt Group a call today! We would be happy to answer any questions that you have and help you achieve your tax credit!
Maura Neill, ABR, CRS, MA
The Gebhardt Group
RE/MAX Greater Atlanta
10220 Medlock Bridge Road
Johns Creek, GA 30097