Wednesday, May 13, 2009

Breaking News- Georgia State Tax Credit

You read it here first! Thanks to Christine Witzel, Suntrust Mortgage, for this latest update.

Here is the current HB 261 bill in a nutshell- what it takes to qualify for the added State Tax Credit in addition to the existing Federal Tax Credit.

1) The tax credit applies to single-family homes and condos if purchased as your primary residence.

2) The property must be for sale prior to the effective date and still for sale after the effective date (May 11, 2009) OR

3) The property must be in default on or before March 1, 2009 or has already been foreclosed and is held by a mortgagor.

4) On the first day of the month after the effective date of the law, the purchase of a home meeting the criteria above within the next six months would be eligible for the tax credit.

5) The tax credit is limited to 1.2% of the purchase price or $1,800, whichever is less.

Here is the tricky part-

6) You can only claim, at most, 1/3 of the tax credit in any one year, beginning with your 2009 tax return.

7) One final caveat: If you're purchasing a home, be sure to request a copy of the necessary documents to maintain for your tax records to document how the home qualified for the tax credit, whether it is because it was listed prior to the effective date OR because it was delinquent or had been foreclosed.

8) This is NOT limited to first-time home buyers.

Any questions? e-mail me at
or contact Christine at

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