The Fiscal Cliff and Your Taxes

Dated: 01/11/2013

Views: 1114

What did we get from Congress while avoiding the fiscal cliff?  Three specific bills were extended: 1)  The Capital Gains Tax exclusion on home sales. For capital gains that are taxable the tax rate remains the same – 15% for those earning up to $450,000 and for those earning higher than 450,000, the tax rate on capital gain rises to 20%. 2)  The Mortgage Debt Forgiveness Tax Exemption was extended for another year. This one was originally set to expire December 31st, 2012.

Now it has been extended for this year. If you are negotiating a short sale, it allows you to mitigate the taxes owed on the portion of the debt that was forgiven. And,
3)  The Mortgage Insurance tax deduction, which expired in 2011, was made retroactive to 2012 through 2013. This one allows deducting mortgage insurance premiums from your taxable income. My recommendation is to consult your tax professional to ensure you are taken advantage of these extensions. As always call me when you or anyone you know is in need of a Real Estate Professional  that is familiar with the Tampa Bay area and with everything that affects it, whether they are looking to sale or purchase. For a FREE consultation contact me today! 

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