CCH reports that the House passed the Housing and Economic Recovery Bill of 2008 (HR 3221) by a vote of 272 to 152 on Wednesday. Swift approval by the Senate is expected. George W had initially opposed the bill, but now will sign it, and could do so as early as this week.
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I have not studied the non-tax aspects, but Kay Bell points out in her post “Housing Bill -- and New Homeowner Tax Breaks -- Back on Track” at DON’T MESS WITH TAXES that there are those “who contend it's simply a handout to irresponsible homeowners and unscrupulous lenders”. I expect that it is a typical Congressional reaction and not a thoughtful response to the problem.
I have not studied the non-tax aspects, but Kay Bell points out in her post “Housing Bill -- and New Homeowner Tax Breaks -- Back on Track” at DON’T MESS WITH TAXES that there are those “who contend it's simply a handout to irresponsible homeowners and unscrupulous lenders”. I expect that it is a typical Congressional reaction and not a thoughtful response to the problem.
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On the 1040 front the bill includes a $7,500 tax credit for first-time homebuyers – which in this case means taxpayers buying their first-ever residence as well as those who haven't owned a home for at least three years. The tax break will apply to those who purchase a home between April 9, 2008 and July 1, 2009 – so it will be available on the 2008 Form 1040. The full amount of the credit will only be available to individuals with incomes under $75,000 or couples earning less than $150,000, and it appears the credit will have to be paid back, interest-free, over 15 years.
On the 1040 front the bill includes a $7,500 tax credit for first-time homebuyers – which in this case means taxpayers buying their first-ever residence as well as those who haven't owned a home for at least three years. The tax break will apply to those who purchase a home between April 9, 2008 and July 1, 2009 – so it will be available on the 2008 Form 1040. The full amount of the credit will only be available to individuals with incomes under $75,000 or couples earning less than $150,000, and it appears the credit will have to be paid back, interest-free, over 15 years.
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I have read that the bill also includes a special $500 property tax deduction for single homeowners, and $1,000 for joint filers, for those who do not itemize deductions on Schedule A.
I have read that the bill also includes a special $500 property tax deduction for single homeowners, and $1,000 for joint filers, for those who do not itemize deductions on Schedule A.
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Once George W signs the final bill I will provide more detailed information.
Once George W signs the final bill I will provide more detailed information.
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TTFN
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