TaxProf Blog

Editor: Paul L. Caron
Pepperdine University School of Law

A Member of the Law Professor Blogs Network

Saturday, July 26, 2008

Senate Passes Housing Tax Relief Bill

The Senate today passed, by a 72-13 vote, the housing stimulus bill (H.R. 3221, The American Housing Rescue & Foreclosure Prevention Act).  The House on Thursday had approved the measure by a 272-152 vote after President Bush earlier in the day dropped his veto threat and urged Republicans to support the bill.  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:

For press and blogosphere coverage, see:

http://taxprof.typepad.com/taxprof_blog/2008/07/senate-passes-h.html

Congressional News | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341c4eab53ef00e553d750ea8834

Listed below are links to weblogs that reference Senate Passes Housing Tax Relief Bill:

» Congress on Real Estate from taxmonkey: Where "Cash is King"
The problems with the real estate market are undeniable. Congress has stepped in with a $15.1 billion package of incentives creatively coined the Housing Assistance Tax Act of 2008 H.R. 3221. Some items of interest: Property tax deduction for non-itemi... [Read More]

Tracked on Jul 30, 2008 12:44:52 AM

Comments

This is just going to delay the inevitable as I wrote in my analysis of the housing bill. Short term relief for greater long term pain.

Posted by: AndyS | Jul 27, 2008 11:17:48 PM