Johnson, Agen, Kupferschmidt & Associates

Tax Tips

October 2008

First-Time Home Buyer Tax Credit
First-time home buyers purchasing any kind of home (new or resale) are
eligible for a tax credit of as much as $7,500. Time is of the essence for
buyers who want to take advantage of this outstanding opportunity. Only
homes purchased on or after April 9, 2008 and before July 1, 2009 are
eligible. The law defines 'first-time home buyer' as a buyer who has not
owned a principal residence during the three-year period prior to the
purchase.

Non Itemizers -- Deduct your Real Estate Taxes This Year
The Housing and Economic Recovery Act of 2008 includes something for
everyone. For the tax year 2008 (and 2008 only) taxpayers who do not
itemize their deductions but pay property taxes will receive an additional
standard deduction -- $500 for single taxpayers, $1000 for married couples
filing jointly. This provision is to benefit homeowners who have paid off their
mortgages. Note: The deduction cannot exceed the property tax bill. For
example, if you are married and filing jointly, and your property taxes total
$800, then your deduction is $800.

September 2008