- Allowing the credit for anybody "who purchases a principal residence"
- One year extension of the credit to December 1, 2010
- Will be effective on the date signed by the President
Additionally, the bill includes a provision to allow for a limited deduction on the loss of a primary residence. Currently, no lossess are allowed when selling anything that qualified under personal use. This bill would allow a deduction for a loss on a principal residence that has been used for more than two years. The loss would be limited to $6,000 ($12,000 joint) and no more than $2,000 could be claimed in each year.
Aaron's Take: I don't see how this bill will pass in its current form. While it seems nice, a $2,000 deduction on the loss of a home would make a maximum difference of $700 for the wealthies taxpayers, and a $300 difference for most middle clas taxpayers. Besides for the fact that the cost of implementation and enforcement would far exceed the benefit, this bill is too little too late. Most of the losess have already occurred.