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.