Gimme Tax Shelter
   

By Bridget McCrea  
 

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It’s time for that yearly financial gut-check that comes just before the April 15 tax return filing deadline. Relief this year comes in the form of housing tax credits that provide tax incentives to homeowners, first-time home buyers, and developers of low-income housing. The incentives include a one-year limited property tax deduction for homeowners who do not itemize their deductions; a temporary tax credit for eligible first-time home buyers; increased tax credits for developers of low-income rental housing; and expansion of the mortgage revenue bond program to help at-risk subprime borrowers refinance their homes.
  

The property tax deduction, for example, allows homeowners who pay property taxes, but who do not itemize their deductions, to get a one-time limited increase in the standard deduction on their 2008 taxes. This increases the standard deduction by $500 ($1,000 for married filing jointly), but not by more than the amount paid in state and local property taxes for the year. 
 

Also available is a tax credit for first-time home buyers who close on their abodes on or after April 9, 2008, and before July 1, 2009. Worth 10 percent of the home’s purchase price, up to a maximum credit of $7,500 ($3,750 each for married filing separately), this tax credit is temporary and must be repaid in equal installments over 15 years.
  

If you purchase a house in 2009 after filing your 2008 taxes, you can file an amended 2008 tax return to claim the credit. The home buyer tax credit (www.federalhousing taxcredit.com/faq.php) is a refundable credit that can lower the amount of federal income taxes you owe or even result in a cash payment.
  

Go Green for Green
  

>> When President Bush signed the Economic Stimulus Act of 2008, he also increased limits on government-backed home loans. Later, he also signed into law the Emergency Economic Stabilization Act of 2008, which included an extension of the residential tax credits for energy-efficient improvements. The tax credit (of up to $500) is available for insulation, replacement windows, water heaters, and certain high-efficiency heating and cooling equipment installed in 2009.
  

Tax credits are also available for qualified solar-water heating and photovoltaic systems installed between 2006 and 2016. The tax credit is good for 30 percent of the cost of the system, up to $2,000. Additionally, there is a consumer tax credit of up to 30 percent of the cost (up to $500 per 0.5 kilowatt of capacity, maximum) for installing a “qualified” fuel cell and microturbine systems between 2006 and 2016. You can learn more about these tax credits for energy efficiency at www.energystar.gov .
  

Did you know?
  

You might be paying too much in property taxes.

“If you purchased a home in the last few years, your property’s value has likely tanked,” says Adam Berkson, CEO of San Diego-based EasyTaxFix. The company allows users to enter their property addresses (www.easytaxfix.com ) and see instantly whether a property appeal will result in savings.
  

The Property Tax Postponement Program

This program allows eligible homeowners to postpone payment of part or all of the property taxes on their principal place of residence (www.sco.ca.gov/ col/taxinfo/ptp/geninfo/description.shtml). 
 

Bridget McCrea is a freelance real estate writer.