Daily Tax Update - July 28, 2008

SENATE CLEARS HOUSING STIMULUS BILL FOR  PRESIDENT’S SIGNATURE:  On July 26, the Senate passed the “Housing and Foreclosure Prevention Act” by a vote of 72-13. The bill contains includes $15.1 billion in tax incentives. The President has said that he will sign the bill.

  • Under the bill, the maximum allowance for the first-time home buyer credit is now $7,500. The bill also provides a new standard deduction of up to $1,000 for non-itemizers; expands certain Gulf Opportunity Zone incentives; and temporarily increases mortgage revenue bond volume. The bill also includes a provision that allows the Treasury Department to expand the line of credit to Fannie Mae and Freddie Mac.
  • Offsets include 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 a two-year delay in the implementation of the worldwide interest allocation benefit.

TAX BILL INTRODUCED JULY 25th:
S.3336: A bill to amend the Internal Revenue Code of 1986 to reduce our dependence on foreign oil by investing in clean, renewable, and alternative energy.
Sponsor: Sen Dole, Elizabeth [NC] (introduced 7/25/2008)      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.

STEPTOE & JOHNSON LLP - TAX PRACTICE
Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country. The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court. The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving. Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them. Read more information on Steptoe's tax practice.