Real Estate Provisions in “Fiscal Cliff” Bill Benefits Housing!

The Cliff at Dieppe
Good News for Home Owners, Home Buyers and Sellers too!

Here is a summary of the Real Estate related issues included in the recent legislation to avert the “Fiscal Cliff.” 

•   The Home Mortgage-Interest Tax Deduction survived (for now).         
          ◊   This deduction could be back on the table once budget talks resume
          ◊   Real Estate Taxes continue to be deductible as well. 
•   Homeowners will be able to deduct their Private Mortgage Insurance (PMI) premiums on their income tax returns.
           ◊   This tax break expired in 2011. The new legislation extends the break through 2013 and makes it retroactive for 2012.  
•   The tax credit for Home-Energy Improvements (up to $500) was restored and retroactive to 2012.  
•   Congress preserved the $250,000/$500,000 Capital Gains Tax Exemption on home sales. 
•   Extended the 15-year straight-line cost recovery for Leasehold Improvements on commercial properties through 2013 and made retroactive to cover 2012.
•   The Mortgage Forgiveness Debt Relief Act was extended for one year.
          ◊   Homeowners who had part of their mortgage debt forgiven as a result of a foreclosure, short sale or mortgage modification won’t have to pay federal taxes on the forgiven portion of the debt.

Tax Advice Disclaimer: The information in this blog should not be used in any actual transaction without the advice and guidance of a professional Tax Adviser who is familiar with all the relevant facts.

Call Me @ 860.945.9284 to discuss the right mortgage option for your family and to take advantage of my FREE  Mortgage Pre-Approval service. We’re licensed in all 6 New England states; NY & FL too. I’m here to help.

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