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 Modification of exclusion of gain on sale of a principal residence.
VII. REVENUE PROVISIONS
Modification of exclusion of gain on sale of a principal residence.The bill amends the
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.