Tax Credits for Buying Troubled Properties

[Robert Mack]

Here is an article about a bill the Senate drafted.

"Washington's housing fix taking shape"
http://money.cnn.com/2008/04/02/news/economy/housing_bipartisan_draft/index.htm?postversion=2008040306

These are two points drafted in the bill, more are in the article.

"Tax credits for buying troubled properties: The bill would create a tax credit of $7,000 for homebuyers who buy foreclosed homes or homes where the current owner is in default."

"Bigger tax break for homebuilders: The bill would expand the so-called net operating loss carryback. The provision would extend to four years from two the time a company may apply its 2008 and 2009 losses to past tax bills.
Homebuilders who enjoyed a profit surge during the housing boom would be able to offset those profits with their losses due to the downturn. The thinking is that the break could help homebuilders preserve jobs and stay in business."