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Wednesday, July 30, 2008

President Bush Signs Housing Tax Relief Bill

President Bush today signed the housing stimulus bill (H.R. 3221, The Housing and Economic Recovery Act of 2008). The House had approved the bill 272-152 and the Senate 72-13.

There are four main tax cuts in the $15.1 billion tax package:

  • Refundable tax credit for first time home buyers (10% of the purchase price, up to a $7,500 credit)
  • Additional standard deduction for real property taxes for non-itemizers ($500 single/$1,000 joint)
  • Expansion of Gulf Opportunity Zone incentives
  • Temporary increase in the low-income housing tax credit

The major tax increases in the package are:

  • Information returns for merchant payment card reimbursements
  • Delay implementation of worldwide allocation of interest until 2011
  • Modification of the ยง 121 exclusion of gain on sale of a principal residence

For further explanation of these tax provisions, see:

Press and blogosphere coverage:

http://taxprof.typepad.com/taxprof_blog/2008/07/president-bush.html

Congressional News, News | Permalink

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» HOUSING BILL ENACTS 1099 REPORTING FOR CREDIT-CARD AND E-PAY VENDORS from Roth & Company, P.C.
One revenue-raising provision of the new tax bill is aimed at the online economy. HR 3221 will required credit-card companies... [Read More]

Tracked on Jul 31, 2008 7:38:16 AM

Comments

Approximately 4-5 months ago, President Bush signed a bill wherein a homeowner who was going to lose their home via a "short-sale" would be exempt from a 1099 on said sale. Where would I find that information?

Please e-mail me at AJ4JJ@aol.com Your help in this matter is greatly appreciated

Posted by: AJ Johns | Sep 11, 2008 11:26:59 PM