Mortgage bill

[JG EA]

Can anyone help me find out more about the part of the bill that will make second home sales gains (if you move into your second home and make it your primary) partially ineligible for the exclusion? Did this part of it stay with the bill?

I'm not clear reading what's on the internet whether this passed yet.

[solomon]

Hr 3996

Does not seem to be going any place for now.

http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.3996:

[New York Enrolled Agent]

Solomon

Correct me if I'm wrong but I believe §404 of the version of HR 3996 passed by the House contains that provision. This is the bill (we hope will be enacted for AMT relief) that the Senate will take up soon.

[solomon]

NYEA - I know HR 3996 passed the House and contains what we want (AMT relief, certain debt forgiveness, extenders, etc.) but I did not know what was happening in the Senate.

[JohnH]

Interesting Site

Here's an interesting site I ran across while researching another bill. It appears to be set up as an educational site organized similar the fantasy sports concept, but I've noticed it is pretty good at tracking the current status of legislation.

http://www.fantasycongress.com/legislation/H.R.3996

I linked it to the particular bill you are interested in, but it has a place to search for the status of any legislative issue which might be of interest to you.

[JG EA]

Thanks for your replies. I have this client that moved into her 2nd home this year in order to start the 2 years running. I got a little nervous when I read about this, but it seems that the move is going to be OK either way, personal use won't be taken into consideration before the end of 2007 even if it is passed.

This is really a back door into making things taxable. I wish I continued urging clients to keep all their improvement receipts as I did in 97 and for a few years after that. But, I got complacent about that bit of advice.

[JohnH]

Also contains S corp late filing penalties

I noticed that H.R. 3996 also includes the late-filing penalties for S-corps which are included in H.R. 3997 that we were discussing on another string, except that in this bill the penalty is $25 per shareholder per month, rather than $100.