Atlanta Housing Source

Congress has extending & expanded the home buyer tax credit. There are several changes, so we wanted to share with you what will be in effect as soon as the President signs the bill.

New bill will be in effect until April 30^th 2010. Must have written binding contracts for the purchase on or before April 30^th.  Must complete sale by July 1.

First time Home Buyer Credit Amount

No Change – Up to $8,000 ($4,000 married filing separately)

First time Home Buyer Eligibility

No Change – May not have had an interest in a principal residence for 3 years prior to purchase.

Current Home Owner Amount of Credit

NEW *** Up to $6,500.00 ($3,250 married filing separately)

Effective Date for Current Home Owner Credit

Date of Enactment

Current Home Buyer Eligibility

Previous/ Current House must have been a primary residence 5 of the previous 8 years.

Income Limits

Increased from $75,000 – $125,000 for Singles

Increased from $150,000 to $225.00 for Married Couples

Additional $20,000 phase out still applies

Limitation on Cost of Purchased Home

The new bill enacts a limit of $800,000 effective the date of enactment

Anti-Fraud Rule

Do to the numerous people falsely claiming the credit, the new bill will require documentation of purchase along with the filing of tax return.

If you are interested in finding out more, please contact us.

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 30^th.

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!

Click here for your FREE Buyer’s Guide to help you through the process.

By now you have all learned that the stimulus bill will soon become law. Well, it misses a major component, it misses the proposal to provide a $15,000 tax credit to homebuyers. It was removed from a $789 billion economic stimulus package.

Housing got us into this mess and housing could have gotten us out of the mess. If people started buying houses again, it will immediately put people to work. It would put the people involved in the transaction back at work.

The purchase of a house immediately puts to work real estate agents, appraisers, lenders, banks, home inspectors, repair people, closing attorneys, builders to complete the homes, appliance manufacturer, moving companies, and a whole multitude of people will be needed. With the typical transaction taking 30-60 days to complete it would have put money immediately into the economy.

Then, once home inventory starts to shrink, builders would start building again. Next, home buyers would need new furniture to fill the home. Then the new buyer is at the local hardware store buying paint to paint a room.  This is trickle down economics. It puts a multitude of people back to work.

It is a shame that the politicians missed this opportunity. The housing industry could have been our ticket out of this economic malaise.

To contact Mark go to www.AtlantaHousingSource.com