Daily Tax Update - July 16, 2008

HOUSE EXPECTED TO VOTE ON HOUSING STIMULUS BILL NEXT WEEK:  Next week, the House is scheduled to vote on the Senate-passed housing stimulus bill. A floor vote could occur July 22. Although the House had previously passed a housing stimulus bill, the Senate housing bill includes new provisions, so the House must approve the Senate-passed version. The House also plans to include a proposal with the bill that will allow the Treasury Department to provide capital to Fannie Mae and Freddie Mac

  • The offsets in the bill include a provision on information reporting for payment card and third-party network transactions; denial of excludable gains from the sale of a primary residence for periods in which the home was not used as a primary residence; and imposition of, or increases in, several failure-to-file penalties.
  • President Bush had previously threatened to veto the housing legislation. However, the proposal dealing with Fannie Mae and Freddie Mac now means “the bill is more important to the President,” according to House Banking Committee Chairman Barney Frank. Frank added, “And the more important the bill is to the President, the more likely he is to sign it.” Frank said that the finished House bill would look “very much like what the Senate sent us, but with the administration's proposals.”

TAX BILL INTRODUCED JULY 15TH:
H.R.6499: To amend the Internal Revenue Code of 1986 to reform the estate and gift tax.
Sponsor: Rep McDermott, Jim [WA-7] (introduced 7/15/2008)      Cosponsors (None)

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

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