Tax Credits Provide Fantastic Opportunity for Home Buyers

The federal and state home buying tax credits expire soon, so hurry up and join the other 1.4 million families who took advantage of them. For those of us who are unaware, a federal tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. What many of us do not know is that the Georgia tax credit is available to all purchasers of an eligible single family residence in Georgia that file a Georgia income tax return.

The tax credit is limited to the purchase of one single family residence and will be for 1.2% of the purchase price, with a maximum credit of $1,800 (whichever is less). Homes purchased for $150,000 or more will receive a maximum of $1,800. You may be asking yourself, can the Georgia credit be combined with the federal $8,000 first time homebuyer tax credit? Yes, if buyers meet the qualification for each credit, they may claim both. Each credit operates independently from the other. One is claimed on your federal income tax return, the other is claimed on your Georgia income tax return. Remember, you must CLOSE by November 1st of this year to qualify so act fast!