|
August 5, 2008 |
|
|
The American Housing Rescue and Foreclosure Prevention Act of 2008 was signed into law on July 30, 2008 and it is designed to provide a housing stimulus in response to the nation's ongoing housing and credit markets meltdown. The landmark act contains provisions to help new home buyers, provide a lifeline to borrowers facing foreclosure, improve mortgage liquidity, and establish a government rescue plan for finance giants Fannie Mae and Freddie Mac.
Key Tax Provisions of the Act are:
- A new $7,500 tax credit for first time homebuyers purchasing homes after April 8, 2008 and before July 1, 2009
- Permits taxpayers who claim the standard deduction to claim an additional standard deduction for state and local property taxes paid. The deduction can not exceed the lesser of property taxes actually paid or $500 ($1,000 for joint return filers)
- It reduces the Homesale Exclusion for Non Qualified Use Periods
- A Simplified and Enhanced Low- Income Housing Credit
- Real Estate Investment Trust (REIT) rules are liberalised
In addition, the act will:
- Allow Qualified homeowners facing foreclosure to apply for lower fixed-rate, 30-year mortgages backed by loan guarantees from the Federal Housing Administration
- Give the Treasury Department the power to extend Fannie Mae and Freddie Mac an unspecified line of credit and to buy their stock if necessary
- Provide $3.9 billion in grants to communities with the highest foreclosure rates to buy foreclosed and abandoned properties
For more information on the many provisions of the new Housing Act and how it may impact you, feel free to contact us.
|
