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Frequently Missed Deductions

State Tax Paid with Last Years Return

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$1,800 Georgia Homebuyer Tax Credit


House Bill 261 was signed into law on May 11, 2009 by Governor Sonny Perdue. . This bill created O.C.G.A. § 48-7-29.17, which establishes an income tax credit against individual income tax for the purchase of an eligible single-family residence located in Georgia.
It allows up to $1,800 tax credit for purchase of one eligible single-family residence made between June 1, 2009 and November 30, 2009.

An eligible single-family residence is a single-family structure (including a condominium unit as defined in Code Section 44-3-71) that is occupied for residential purposes by a single family, that is:
a) Any residence (including a new residence, one occupied at the time of sale, or a previously occupied residence) that was for sale prior to May 11, 2009 and that remained for sale after May 11, 2009; or
b) A residence with respect to which a foreclosure event has taken place and which is owned by the mortgagor or the mortgagor’s agent; or
c) An owner-occupied residence with respect to which the owner’s acquisition indebtedness was in default on or before March 1, 2009.
Acquisition indebtedness is debt incurred in acquiring, constructing, or substantially improving a qualified residence and which is secured by such residence. Refinanced debt is acquisition debt if at least a portion of such debt refinances the principal amount of existing acquisition indebtedness.



A taxpayer is allowed the tax credit for a purchase of one eligible single-family residence made between June 1, 2009 and November 30, 2009. The credit amount is the lesser of 1.2 percent of the purchase price of the eligible single-family residence or $1,800.00. The amount of the tax credit that may be claimed and allowed in a single taxable year cannot exceed the lesser of 1/3 of the credit or the taxpayer’s income tax liability. This means a maximum of $600 may be claimed each year. Any unused tax credit can be carried forward but cannot be carried back.

The taxpayer must have the following documentation of the eligibility of the single-family residence:
1. A bona fide listing agreement with a real estate agent or broker licensed in this state, or documentation that the eligible single-family residence was for sale directly by the owner without a real estate agent or broker, or other appropriate documentation to validate the eligibility of the single-family residence.
2. A copy of the closing statement.
3. If the residence qualifies because the owner’s acquisition indebtedness was in default on or before March 1, 2009, or because it was a residence with respect to which a foreclosure event has taken place, the taxpayer must supply documentation to show that this was the case.

For more information about the eligibility for Georgia Homebuyer Credit and how to claim it contact Nicholas at 770-374-0077.

Source: Georgia Department of Revenue

 

 

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