New Stimulus Bill Proposal
Due to continuing concern about the economy, the Senate Democratic and Republican leaders have reached an “agreement in principle” on the outline of a second economic stimulus package. This one will focus on helping to stabilize the housing market. This bill would create a $7,000 tax credit for purchasing a property in foreclosure. Second, it would allow a $500 deduction ($1,000 for joint filers) for property taxes paid by those who do not itemize. Also, the bill would also extend the NOL carryback from two to four years for losses occurring in 2008 and 2009. The Senate has not yet voted on the bill.
The hope for the first package was that taxpayers would spend the money and stimulate the economy. They hope the second package will help the struggling housing market. For continuing updates visit the IRS website.