Raquel Lavender

***If you are not a Georgia Resident but know someone that is, please, share this information***

On Monday, May 11th, Georgia State Gov. Sonny Perdue signed into law HB 261 a tax credit from the state.

Some highlights of HB261

- $1,800 or 1.2% of the purchase price spread over 3years(1/3 each year)
- For purchases between June 1 and November 30, 2009
- Do not have to be a first time homebuyer
- For investment properties as well as owner occupied
- Only one credit per taxpayer

The tax credit is taken over a 3 year period and, unlike the federal tax credit, there is no income restriction. The income restriction for the federal tax credit begins at $75,000 for individuals or $150,000 for married couples and then phases out. The federal credit ends on November 30th as well.

With up to $8,000 from the federal government and now $1,800 more from Georgia, coupled with the lowest home prices and interest rates in a long time - um - this is just plain "ridiculously" good for buyers.

You may also visit the Metro South Association of REALTORS website http://www.msar.org/ for further information.

(Information submitted by the Metro South Association of REALTORS)

Raquel Lavender. Associate Broker.ABR,AHS,ASR,CIPS,CSP,GRI,TRC. Keller Williams Realty Grand South. Office 770-914-8885. Cell 770-317-9205.

Useful information for understanding the Tax Credit Deal a little more...

A. The Tax Credit is for home buyers (either spouse filing jointly) who have NOT owned a principal residence during the three-year period prior to the purchase. Ownership of vacation property or rental property does not disqualify home buyers from this program. Click Here for more details...

B. The maximum credit is $8,000 or 10% of the home purchase, whichever is less.

C. The credit is available for homes purchased on or after January 1, 2009 and before December 31, 2009.

D. To qualify for the full tax credit, married couples' modified adjusted gross income (MAGI) should be under $150,000 and single filers' MAGI should be less than $75,000. Partial tax credits may be available for married couples with MAGI incomes of over $150,000 but under $170,000 and single filers with incomes over $75,000 but under $95,000. If married couples who qualify for the first-time tax credit file separately, they would both claim 5% of the home purchase or $4,000 each (whichever is less) on their tax returns. I advise you to contact your trusted Accountant or Tax Preparer to see if you are in the range to qualified.

E. Home buyers who qualify for this program, but who do not intend to purchase a home till the end of 2009, may elect to alter their tax withholdings (up to the amount of the of the tax credit) in order to save up money for a down payment. However, if the purchase of the home does not occur, the taxes must be repaid to the IRS.

F. There is no recapture or repayment clause IF the home is owned for at least 36 months, this is under the new 2009 Law.

G. The effective date of purchase for new construction is the date the owner first occupies the house. So even if construction began in 2008, as long as the home and buyers qualify for the tax credit, they will be eligible if they take possession any time during 2009. However, new construction bought from the builder is only eligible if the settlement/closing date takes place between January 1, 2009 and December 31, 2009.

H. The full amount of the eligible tax credit is refunded to the buyer, regardless of whether the buyer has paid an equivalent amount in taxes or not.

Other notes from USNews ...

If you are interested in properties in the Greater Atlanta Area. Click here...

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