June 15, 2009

Remember there is only SIX months (through Nov 30, 2009) left for the $8000 Tax Credit and Housing Bill 261 Benefits!!!!

Posted in Uncategorized tagged , , , , , , at 5:25 pm by winterbaserva

tax_credit

Remember there is only SIX months (through Nov 30, 2009) left for the $8000 Tax Credit. Here is a quick recap:

Feature

Explanation

Amount of Credit Ten Percent of the cost of home, not to exceed $80000.

Examples:

·  If a home costs $65,000, the allowable credit would be $6,500.

·  If a home costs $120,000, then the allowable credit would be $8,000.

Eligible Property Any single-family residence (including condos) that will be used as a primary residence.
Refundable Reduces income tax liability for the year of purchase. Claimed on tax return for that tax year.  However, there are interesting options – purchases in 2009 can be claimed in 2008 – so that the refund can be received via an amended 2008 tax return.  That way the buyer does not have to wait until April 2009 to receive the money.

Individuals should consult a professional tax advisor for exact tax calculations.

Examples:

·  If an individual’s actual tax liability was $5,000, then after the tax credit is applied the purchaser would receive a total refund of $3,000. The refundable amount is the difference between the $8,000 tax credit and the amount of one’s tax liability.

·  If an individual’s actual tax refund was $2,000, then after the tax credit is applied the purchaser would receive a total refund of $10,000.

Income Limit Individuals whose Form 1040 filing status is single (or head of household) are eligible for the tax credit if their income is no more than $75,000. Individuals who file a joint return may have no more than $150,000 in income.

Individuals with incomes between $75,001 and 94,999 (single) or $150,001 and $169,999 (joint returns) are eligible for a partial tax credit. Individuals with incomes greater than $95,000 (single) or $170,000 (joint return) are not eligible for this tax credit.

Recapture This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.

 

 

In Addition, Here is Some More Information about the Georgia Housing Bill 261 that was Just Passed for Up to $1,800 in Savings…

 HB 261 was signed into law on May 11, 2009 by Georgia Governor Sonny Perdue. GAR applauds House Sponsor Ron Stephens (Savannah), House Ways and Means Chairman Larry O’Neal (Warner Robins) and Senate Chairman Chip Pearson (Dawsonville) for their tireless efforts in the passage of this important legislation. Unlike the federal tax credit, the Georgia credit is not limited to first-time homebuyers, and there are no applicable income limits. The credit is only available to buyers of eligible single family residences who close between June 1 and November 30 of this year. The prompt actions of all GAR members who responded to Calls for Action on this legislation were pivotal in influencing the passage of this legislation. Below are Frequently Asked Questions regarding the Georgia Tax Credit:

1. Is this tax credit limited to first time homebuyers?
NO, all purchasers of an eligible single family residence in Georgia that file a Georgia income tax return can claim the credit.

2. Can the Georgia credit be combined with the federal $8,000 first time homebuyer tax credit?
YES, if buyers meet the qualification for each credit they may claim both. Each credit operates independently from the other. One is claimed on your federal income tax return, the other is claimed on your Georgia income tax return.

3. Is it true this credit is limited to the purchase of a single family residence?
YES, the tax credit is limited to the purchase of one single family residence.
Single-family residences (including condominiums) are eligible if they are:
 * New residences, residences occupied at the time of sale, or previously occupied residences, if such residences: 
    – Were for sale prior to the effective date (5/11/09) and were still for sale after the effective date; 
 * Owner-occupied residences with respect to which the owner’s acquisition debt is in default on or before March 1, 2009; and 
 * Residences with respect to which a foreclosure event has taken place and which are owned by the mortgagor or the mortgagor’s agent.

4. Is it true that eligible single family residences must have been listed prior to May 11, 2009 in order to qualify for the credit?
YES, the original intent of the bill was aimed at reducing the housing stock that has been on the market for an extended period of time.

5. Is it true that only eligible buyers that close between June 1, 2009 and Nov. 30, 2009 can claim the credit?
YES, the intent of credit is to stimulate the market by encouraging potential buyers to get off the fence and BUY NOW!

6. How do I determine the amount of tax credit I am eligible for?
The tax credit will be for 1.2% of the purchase price, with a maximum credit of $1,800 (whichever is less). Homes purchased for $150,000 or more will receive a maximum of $1,800.

7. Can I claim all $1,800 on my 2009 income tax returns?
NO, the total amount of your credit must be claimed in one-third increments over a three year period. The maximum credit per year is $600 if you are eligible for the maximum $1,800. Any excess or unused credit may be carried forward to apply to succeeding years’ tax liability.

8. Can I amend my 2008 Georgia income tax return to claim the credit?
NO, the tax credit cannot be applied against prior years’ tax liability.

9. I am looking for investment property or a second home, is the credit available for the purchase of owner-occupied residences only?
NO, all eligible single family residences qualify for the credit. However, each taxpayer can claim the credit one time only.

10. Is there an income limit for buyers who claim the credit?
NO, there are no income limits applicable to this credit.

11. Is there a limit to how long a buyer must own the property to claim the credit?
NO, there is not a limit to how long a buyer must own the property.

12. Does any portion of the credit require repayment for any reason?
NO, if you are awarded the credit there are no penalties that would require you repay any portion of the credit.

    REMEBER…I SPECIALIZE in foreclosures, short sales, distressed sellers and GOOD DEALS in ALL price points. Tell me what you’re looking for and let me find you YOUR deal of a lifetime 678.463.3173!!!

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