Georgia homebuyers have something to look forward to this year: a brand new state income tax credit of up to $1,800.
Signed by Governor Perdue on May 11th, the tax credit is effective immediately, and is available until the end of November.
This tax credit is in addition to the current $8,000 federal tax credit given to first-time homebuyers.
But unlike the federal credit, the Georgia tax credit is available to anyone who buys an eligible home, not just first-time purchasers.
What houses are eligible? Single-family homes that were for sale on or before May 11, owner-occupied homes where the owner was in default of their mortgage on or before March 1, 2009, or REO properties held by the lender or the lender’s agent.
The amount of the credit is equal to 1.2 percent of the purchase price or $1,800, whichever is less. The credit can also only be claimed once, and it must be claimed over three years.
The credit is not refundable, which means that it can’t be claimed beyond an individual’s state income tax liability. That being said, any unused tax credit amount can be carried forward to apply against succeeding years’ tax liability.
Harlan and Associates provides real estate closing and settlement services for home buyers, sellers, investors, and lenders. The firm, founded in 2005, concentrates its practice in real estate matters and has represented clients throughout Atlanta and the State of Georgia. We'd love to be your closing attorneys. Want to know more? Contact us and we'll be happy to discuss how Harlan and Associates can be of service to you!