Tax Category

Time to Apply for Homestead Exemption

February 6th, 2012 at 10:07 pm by Mike Minihan

If you purchased a home in 2011 as a primary residence (the home you live in full time) than its very important that you file for Homestead Exemption now. Homestead Exemption is simply a discount on your property tax bill for making that home your primary residence and practically everyone qualifies in Georgia.

If you can answer yes to the following two questions, than you qualify for the basic homestead exemption in your county:

Are you a legal resident of the county?
Have you owned and occupied the home since January 1, 2012?

If you answered yes to both of these questions… go ahead and apply. You only have to do this once! Your Homestead Exemption will renew automatically every year after this so you don’t have to worry about doing this if you have already done it in a previous year.

What’s the Deadline for Filing Homestead Exemption?

In most counties, the application must be filed by March 1 of the year the exemption is sought, but some counties have a later deadline.
In Fulton, DeKalb, Cobb and Gwinnett County the deadline is April 1st.

How long will the Exemption last?

The Homestead exemption will remain on the property until there is a change in ownership.

What is the Homestead Exemption Amount?

These amounts are a reduction in what the amount that the taxed is based on.

As of January 2012:

Fulton County:

$30,000.00 for Atlanta/Fulton
More Information

Dekalb County:

Depends on whether a property tax assessment freeze has been applied for.
More Information

Gwinnett County:

$10,000 for the County taxes
$4,000 off of the school
$7,000.00 off recreation
$2,000 off of the state.
More Information

Cobb County:

$10,00How does this affect my bill?
Example 2011 Cobb County Property Tax amounts:
- Market Value: $100,000.00
- Taxable Value (40% of Market Value): 40,000.00
- Less Exemptions (assuming $10,000) 10,000.00
- $50,000.00: Multiply by Millage Rate 0.03026. Property Tax $1,513.00
- Without Homestead Exemption the county property taxes would be $1,815.60.

To fill out the forms for Homestead Exemption in your County, simply click on the links above called “More Information” and follow the directions. If you have trouble or need help, give me a call.

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Is there a New 3.8% Tax on Home Sales?

November 11th, 2010 at 1:18 pm by Mike Minihan

I’ve received many questions from clients asking if there is a new 3.8% Tax on Home Sales, so I thought I better shed some light on this topic. The topic itself comes from the passing of the Patient Protection Affordable Care Act (PPACA) health care legislation earlier this year. Before going any further, I just want to make sure that all understand that I am not an accountant or tax professional so when it comes to IRS Regulations, you should check with your accountant or tax professional for the most up to date information. This is also not a political blog so I will not be taking any sides here, just relaying some of the facts that I have come to understand on the 3.8% Tax on Home Sales.

According to the legislation, beginning January 1, 2013, there will be a 3.8% Medicare Tax on a portion of the net investment income of those deemed “High Income Filers”. This tax is NOT specifically on Real Estate transactions! This tax is just on the “Net Investment Income” of certain people. So let’s pull this apart into who will be affected, and then How they will be affected.

Who Does this Tax Affect?

A “High Income Filer” is a single person filing a tax return with an Adjusted Gross Income (AGI) over $200,000, or a married couple filing jointly with an AGI over $250,000. Not everyone in this category will be affected either, but if you are filing a tax return with an Adjusted Gross Income less than the $200k/$250k level, this does not concern you.

How Does this Tax Affect this Group?

In respect to the sale of a Primary Residence (the home you own and live in full time) if the gain on the Sale of the property is less than $250,000 (individual) or $500,000 (couple filing jointly), NO tax will be paid on the gain. This rule has been in affect for some time and is not changed in this legislation. So if you are a “High Income Filer” and sell your primary residence for less than a $250k(single)/$500k(married) profit, then your real estate sale will not be affected by this bill. The New Medicare Tax will only apply to any gain realized OVER $250k/$500k.

So you can see that this is not a direct tax on Real Estate Specifically, and the favorable tax rules on primary residence sales with gains less than $250k/$500k are still in affect. For most of the clients I have shared this with, it has greatly eased their minds since unfortunately, I haven’t seen an overwhelming number of home sellers with a gain of more than a half-million dollars in our current market.

For a more complete explanation of this section of the legislation, and how it will affect second homes and investment properties, see this report put out by the National Association of Realtors.

I hope that clears up some of the confusion around the 3.8% tax on Home Sales question. If you have a specific question regarding the sale of your own home, don’t hesitate to contact me.

Tags: Legislation, LinkedIn, Seller, Tax
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Tax credit closing extension done…FINALLY!

July 3rd, 2010 at 9:52 am by Mike Minihan

Just a quick update on the Home Buyer Tax Credit. On Wednesday night, the senate finally passed the closing deadline extension for the home buyer tax credit. This legislation extends the deadline to close on the property from June 30th until September 30th for eligible buyers who put their home under contract by April 30th of this year. I understand that the gap between Wednesday and whenever the President signs the bill will not effect anyone closing during that time and the new rule will be retroactive for that period. Good news for those buyers who rushed to get their property under contract by end of April but for whatever issue could not close by last Wednesday!

Posted in Home Buyers, Home Sellers, Housing Legislation, Tax | Add your comment

Tax Credit Extension still not done!

June 30th, 2010 at 1:28 pm by Mike Minihan

As we have been tracking the progress of the various efforts to extend the closing date deadline on the First Time-Home-Buye r Tax Credit, it appears that Congress is bringing things right down to the last very minute. Currently, for all qualified Buyers who put a home under contract by April 30, 2010, in order to get up to $8000 of tax credit money from the government, they must have that purchase closed by today.

Efforts have been in the works to extend that date that the homes must be closed until September 30, 2010 due to the backlog of loans that Lenders have had as a result of the surge of home buying that took place in April. As of right now, the House has passed a bill to extend the tax credit and it is now sitting in the senate. If the Senate can pass this bill tonight and get the President’s signature on it, there will be a lot of very relieved home buyers out there this evening. Close to 180,000 home buyers to be more specific. Here are some interesting numbers from an article put out by the National Association of Realtors yesterday:

Up to 180,000 home buyers will lose their tax credit through no fault of their own if Congress fails to pass an extension to the home buyer tax credit by June 30 when the closing deadline expires. Included in that number are thousands of home buyers in every state of the union, from 390 in Wyoming to 17,700 in California, according to estimates by the National Association of Realtors®.

Specifically in Georgia, it is estimated that 6,270 home buyers will stand to lose their tax credit if the senate does not pass the bill.

Hopefully, for those Buyers that did make things happen by April 30th, the date will be extended. I’ll update the blog as soon as I hear the final verdict!

Tags: First Time Buyers, Legislation, LinkedIn, Tax Credit
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The Updated 2009 Homebuyer Tax Credit – Video

November 10th, 2009 at 10:35 am by Mike Minihan

Tags: Buyer, First Time Buyers, Legislation, LinkedIn, Seller, Sellers, Stimulus Package, Tax, Tax Credit
Posted in Home Buyers, Home Sellers, Housing Legislation, Tax | Add your comment

Tax Credit Extension Passes House – on its way to Obama

November 6th, 2009 at 5:54 am by Mike Minihan

Last night, the House voted 403-12 to expand and extend the Homebuyer Tax Credit (as part of the Unemployment Insurance Bill). The bill is now on its way to President Obama for his signature.

The agreement on the extension and expansion of the credit is as follows:

Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
Credit remains at $8,000 for first-time purchasers. No change to definition of first-time purchaser.
New $6,500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
New anti-fraud limitations are imposed.

Contact Mike if you or anyone you know would like to discuss how you can take advantage of this tax credit over then next few months.

Tags: Buyer, First Time Buyers, Legislation, LinkedIn, Move-Up, Opportunities, Seller, Sellers, Stimulus Package, Tax Credit
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$8k Real Estate First Time Home buyer Tax Credit – Explained for Atlanta

July 29th, 2009 at 7:20 am by Mike Minihan

Here is a great little video that explains very simply, the details of the First Time Home Buyer Tax credit offered on the Federal Level. You’ve only got until Mid October to get serious about taking advantage of this, if you want to have your home closed by the November 30 deadline!

Tags: Buyer, First Time Buyers, Legislation, LinkedIn, Stimulus Package, Tax, Tax Credit
Posted in Home Buyers, Housing Legislation, Opportunity, Tax | Add your comment

Want the Government to pay your rent for 6 months?

July 27th, 2009 at 7:02 am by Mike Minihan

Well, would you? If you are a first time home buyer, meaning that you have not owned a home in the last three years, that is what the government is willing to do as long as you purchase a home and close on it by November 30th. I’m referring to the First Time Home Buyer Tax Credit, otherwise known as “The American Recovery and Reinvestment Act of 2009″. There are some income qualifications that apply of course, but consider this:

- If you take out a mortgage of $200,000 to buy a home

- With and interest rate of 5.5% on a 30 year fixed rate mortgage

- Your monthly payment, not including taxes and insurance will be $1135.58

- Take your First Time Home Buyer Tax credit of $8000 and apply it towards that, and that tax credit will pay for 7 months of your mortgage payments, and it is absolutely FREE!!! Read more

Tags: Buyer, First Time Buyers, Legislation, LinkedIn, Opportunities, Stimulus Package, Tax, Tax Credit
Posted in Home Buyers, Housing Legislation, Mortgage, Opportunity, Tax, Uncategorized | Add your comment

Georgia Housing Tax Credit is Passed – One more reason to buy this year!

May 26th, 2009 at 3:24 pm by Mike Minihan

Governor Perdue signed into law House Bill 261 on May 11th which provides an income tax credit for the purchase of a single-family residence during the six months between June 1 and November 30, 2009. The credit amount is the lesser of $1,800 or 1.2 percent of the purchase price. The tax credit is applied over three years, with one-third of the credit available each year (so for you people that didn’t major in math, if you got the whole $1800, that would be $600 each year for the next three years . If the amount of the credit exceeds the taxpayer’s tax liability, the unused credit may carry forward to the next tax year.

Tags: Buyer, First Time Buyers, Legislation, LinkedIn, Opportunities, Seller, Sellers, Stimulus Package, Tax, Tax Credit
Posted in Home Buyers, Housing Legislation, Tax, Uncategorized | Add your comment

Mike’s Remarks on April 2009 – Atlanta Real Estate Market

May 15th, 2009 at 12:21 pm by Mike Minihan

April 2009 Atlanta Real Estate Update

Spring is Staying Steady

Atlanta’s market in April seemed to resemble March quite a bit. Number of homes sold and level of inventory all remained relatively the same as the month before, which is not a bad thing, but it’s not particularly remarkable either.

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