Tax Time. Image from Microsoft Office. DO NOT COPY

There are several important deadlines and changes taking effect in 2009.  All information below is from William Perez  (About.com) and has been reposted except for the Portland, Oregon information:

FORECLOSURES

  • Fannie and Freddie will suspend foreclosures and evictions on occupied homes until January 9, 2009.

FHA FINANCING

  • The First-Time Homeowner Tax Credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009.
  • FHA downpayment changes to 3.5% on January 1, 2009
  • FHA loan limits in the Portland metro area falling from $418,750 to $362,250 on single-family residences on January 1, 2009.

IRS

  • The amount of gain that will qualify for the capital gain exclusion is limited based on the amount of time that the house is used as a primary residence and will take effect after January 1, 2009.

Qualifying Use vs. Non-Qualifying Use

  • Taxpayers can qualify to exclude up to $250,000 in capital gains ($500,000 if married and filing jointly) when selling a house. To qualify, the person needs to own and live in the property as his or her primary residence for at least two years out of the five years ending on the date of sale.

Time Period of Non-Qualifying Use

  • For the purpose of calculating capital gains, the period of non-qualifying use is any period of time the property is not being used as a main home that begins on or after January 1, 2009.

Planning Tips for Non-Qualifying Use

  • Taxpayers owning second homes, vacation homes, and rental properties will need to revise their capital gains strategy accordingly. The use test is applied for the time period beginning January 1, 2009, until the property is sold.
  • Taxpayers planning to sell a second home may want to move in and make that property their primary residence starting January 1, 2009, to gain as much qualifying use as possible before selling it.

If you have any questions, please consult a tax accountant or tax attorney.

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