As the Senate takes up the House version of one of the most-watched pieces of legislation to ever hit the Congress, I thought it would be useful to lay out the pertinent tax-related items for my clients and friends. Some of this is a bit too much "tax jargon" for most, so I've attempted to give a "Real World" summary of each item. And, of course, this list is partial, and does NOT include further funding of existent federal and state programs.
Modification of the First-Time Home Buyer Tax Credit
This item first came to us in September, in the first wave of legislation aimed at helping the economy. Per that legislation, the first time home buyer tax credit provides a tax credit of up to $7,500 ($3,750 for separate filers). As it stands now, it's essentially a no-interest loan from the government, as it must be repaid over 15 years. The credit is available for people who buy a home after April 9, 2008, and before July 1, 2009. The new bill proposes to eliminate the repayment requirement for homes purchased after December 31, 2008.
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