|
|
Article: New rules seek to reduce tax advantages of converting second home to principal residence.
- Article from:
- The Tax Adviser
- Article date:
- December 1, 2008
- Author:
CopyrightCOPYRIGHT 2008 American Institute of CPA's. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
On July 30, 2008, the 2008 Housing and Economic Recovery Act, P.L. 110-289, was signed into law by President Bush. While the act was principally aimed at strengthening the ailing housing market and injecting confidence into its related government-sponsored enterprises, it did contain some noteworthy tax provisions, which largely targeted homeowners, creditors, and state and local authorities.
Because the roughly $16 billion tax arm of this housing relief package was intended to be revenue neutral, the act includes a few significant revenue offsets, one of which seeks to close, at a projected cost to taxpayers of $1.4 billion over the next 10 years, a ...