Housing Assistance Act of 2008.

Gathered below are just some important tax credits that should be taken into account when filing your 2008 tax returns. The end of the year is fast approaching.

I. CURBING THE RISING COSTS OF OWNING A HOME

The bill would provide home owners

Additional standard deduction for real property taxes.

who claim the standard deduction with an additional standard deduction for State and local real

property taxes. The maximum amount that may be claimed under this provision is $500 ($1,000

for joint filers). This proposal applies for tax year 2008. This proposal is estimated to cost

$1.537 billion over 10 years.

II. REDUCING EXCESS SUPPLY IN THE MARKET

Refundable first-time home buyer credit. The bill would provide a refundable tax credit that

is equivalent to an interest-free loan equal to 10 percent of the purchase of a home (up to $7,500)

by first-time home buyers. The provision applies to homes purchased on or after April 9, 2008

and before July 1, 2009. Taxpayers receiving this tax credit would be required to repay any

amount received under this provision back to the government over 15 years in equal

installments. The credit begins to phase out for taxpayers with adjusted gross income in excess

of $75,000 ($150,000 in the case of a joint return). This proposal is estimated to cost $4.853

billion over 10 years.

VII. REVENUE PROVISIONS

current law exclusion of up to $250,000 ($500,000 if married filing a joint return) of gain

realized on the sale or exchange of a principal residence. Under current law, the sale of a home

will qualify for this exclusion if the home is a taxpayer's principal residence for at least two of

the five years ending on the sale or exchange. This exclusion applies even if the home was

initially purchased as a second home. Under the bill, if a taxpayer moves their principal

residence to a second home, the taxpayer will only be able to utilize this exclusion to the extent

that it relates to the period of time when the home was first used as a principal residence and to

the extent that it relates to the period of time that the home was owned prior to January 1, 2009.

This proposal is estimated to raise $1.394 billion over 10 yrs

Click here to review the entire Housing Assistance Act of 2008.