Guam § 4803 - Definitions.

§ 4803. Definitions.

For purposes of this Article, the following words and

phrases are defined to mean:

(a) Eligibility means those persons meeting the

following requirements:

(1) the buyer’s household income must fall within

a specified limit set aside by the Internal Revenue

Service;

(2) the mortgage loan must be a new loan, not a

refinancing; and

(3) the home must become the buyer’s principal

residence within sixty (60) days of closing.

(b) First time homebuyer means any individual or

family who has not had any ownership interest in a

residential dwelling within the five (5) years preceding the

date of application. A family or individual who has had an

ownership interest in residential real property within the

five (5) year period preceding the date of application, but

such interest was terminated by a decree of divorce or

operation of law, does qualify as a first-time homeowner.

COL9/7/2021

(c) Mortgage credit certificate means the method of

providing housing assistance to eligible homebuyers

authorized by Congress in the 1984 Tax Reform Act.

(d) Recapture or recapture tax means a supplemental

Federal income tax to which mortgage credit certificate

recipients may be subject if they sell the house they

purchased with mortgage credit certificate assistance within

nine (9) years of the date of purchase.

(e) Tax credit means an entitlement authorizing the

taxpayer to subtract the amount of credit from his Federal

income tax.

(f) Tax deduction means that amount subtracted from

the adjusted gross income tax before calculating the Federal

income tax.

2015 NOTE: Subsection designations in (a) were altered to adhere to the

Compiler’s alpha-numeric scheme pursuant to the authority granted by 1

GCA § 1606.