Housing Assistance Act of 2008 - Something for Everyone

FIRST-TIME HOMEBUYER TAX CREDIT
First-time homebuyers are eligible for a temporary refundable tax credit equal to 10% of the purchase price of a home up to $7,500. The tax credit is phase-out between Adjusted Gross Incomes of $75,000 to $95,000 Single ($150,000 to $170,000 Married Filing Jointly).

PROPERTY TAX DEDUCTION FOR NON-ITEMIZERS
For 2008 only, if you take the standard deduction you can add to that the lower of your actual property taxes paid or $500 Single ($1000 Married Filing Jointly).
This will benefit individuals with small or no mortgage.

REDUCED HOME SALE EXCLUSION
For homes sold after 12/31/08, you will not get full exclusion on the sale of primary residence if you rent it out after moving out. The examples I've seen go like this: You buy a home on 1/1/09, live in it for 2 years, and then rent it for two year, and then sell it. In this example if you had a gain of $400,000 and were married filing jointly, than 50% of the gain can be excluded and 50% would be subject to capital gains tax. However, I haven't seen an example of mixed period use prior to 1/1/09.

To get more detail on the Housing Assistance Act of 2008 check out: RIA CCH