Taxes (TAX)

[ypsiCPA]

Changes in Real Estate Taxation

1. Filers who do not itemize deductions can deduct real estate taxes they paid in 2008 in addition to their standard deduction. The extra write-off is capped at $1,000 for marrieds and $500 for singles.

2. First-time home buyers get a tax credit of up to $7,500 for buying a main home after April 8, 2008, and before July 1, 2009.

3. The credits for low-income housing and fixing up old buildings are juicier: They now can offset the minimum tax.

4. Congress restricted a tax break for turning a second home into a main home: Some of the gain will be ineligible for the home-sale exclusion if the house is converted to personal use after 2008 and is later sold.

Details at http://www.kiplinger.com/businessresource/forecast/archive/New_Law_Adds_Tax_Breaks_for_Real_Estate_080801.html