Atlanta Homebuyers $9,800.00 TAX Credit: Who Qualifies? Part 1 in a series

Tax Credit

Atlanta Homebuyers $9,800.00 TAX Credit: Who Qualifies? Part 1 in a series

The American Recovery and Investment Act of 2009 authorizes an $8,000.00 credit on your federal tax return for first time homebuyersBut wait, thers more.  TRhe Federal government does not use a standard definition of a first time homebuyer.  In fact, the following homebuyers also qualify for the first time homebuyers credit

  1.  A home purchase must occur on or after January 1, 2009 and before December 1, 2009.
  2. The purchase date is the date when closing occurs and the title to the property transfers to the home owner.
  3. The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
  4. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

tax creditINCOME LIMITS for $8,000 Federal Tax Credit1. Income Limit: The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return. Above these limits there is a phase out of the credit.  The absolute ceiling is approximately $20,000 above each limit.2. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

tax credit$1,800 Tax Credit for Homebyers in GeorgiaGeorgia Houe Bill 261 authorizes an $1,800 tax credit to the following buyers1. Home purchased between June 1 and November 30, 20092. No income limits for home buyers3. Single Family house must have been for sale before May 11, 2009 and home Still For Sale at time of purchase4. OR Owner-occupied residences with respect to which the owner’s acquisition debt is in default on or before March 1, 20095. OR  Residences with respect to which a foreclosure event has taken place and which are owned by the mortgagor or the mortgagor’s agent.

Georgia Association of Realtors has an excellent description of the Georgia Iax Bill.Atlanta Homebuyers $9,800.00 TAX Credit: Who Qualifies? Part 1 in a series…next time…How to use the Tax Credits

The English Team and Sally English look forward to assisting you with your Atlanta Home Search.  Contact us for excellent home buyer advice.