Gwinnett Real Estate Agent Give Facts about the Tax Credits for Home Buyers
FEDERAL TAX CREDIT
Unlike the 2008 tax credit of $7,500.00, the 2009 tax credit has been raised to $8,000 and does not need to be repaid. Any home more than $80,000 qualifies for the $8,000. If the house is less than $80,000, then the home purchaser would qualify for 10% of the home value.
The house must be for a principal residence (where you live more than 50% of the time) and the credit lasts for home closed before 12/1/2009. It is also for first time homebuyers only. A first time homebuyer is classified as anyone who has not had any interest in a home in the last 3 years.
A qualified buyer claims this amount on their individualized tax return. So a person who has a tax liability of $9,200 would only pay $1,200. If the tax liability is less than the $8,000, the qualified home purchaser would receive a check for the difference.
There are some income restrictions for this tax credit. Single/Head of Household are eligible if their income is no more than $75,000. Married couples who file jointly have a cap of no more than $150,000.
It is easy to claim for this tax incentive. Just claim the credit on the IRS Form 1040 and it will be reflected on the Form 5040.
GEORGIA TAX CREDIT
This tax credit is NOT limited to first time home buyers. You can qualify for both the Federal and State Tax credits or just the State Tax Credit.
It applies to single family residences that are listed for sale prior to May 11, 2009 and only applies for properties that purchases that close before November 30th.
This credit is figured by taking 1.2% of the purchase price with a maximum credit of $1,800. Houses over $150,000 will receive the maximum amount of $1,800.
The credit for the state is calculated differently, it is over 3 years or up to $600.00 per year. You cannot amend your 2008 returns, it must start in 2009.
So there are the facts about how first time home buyers can be eligible for up to $9,800, but time is running out. So if you are thinking about buying your first home, start your search and let us help you find some of the best deals! Currently there are over 80,000 home and we allow you to search them for FREE. So let’s get started!
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