"Fiscal Cliff" Legislation and the effect on Real Estate

Those of us interested in how the "Fiscal Cliff" legislation shook out for Real Estate, you will be happy to see little  'grunions' like me, have been digging around to find out.   This is a recap directly from the NAR site:

Real Estate Tax Extenders

• Mortgage Cancellation Relief is extended for one year to Jan. 1, 2014
• Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012
• 15-year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012
• 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012

AND

Capital Gains

Capital Gains rate stays at 15 percent for those in the top rate of $400,000 (individual) and $450,000 (joint) return. After that, any gains above those amounts will be taxed at 20 percent. The $250,000/$500,000 exclusion for sale of principal residence remains in place. But remember Obamacare adds 3.8% by this calculation   http://www.blogger.com/blogger.g?blogID=8886224080781153404#editor/target=post;postID=1214489800176084526
make sure you read it.

http://speakingofrealestate.blogs.realtor.org/2012/10/09/3-8-tax-whats-true-whats-not/
In  addition, make sure you watch it!!

Estate Tax

The first $5 million dollars in individual estates and $10 million for family estates are now exempted from the estate tax. After that the rate will be 40 percent, up from 35 percent. The exemption amounts are indexed for inflation.

There are still more very important issues like MID (mortgage interest deduction) that have NOT be addressed.  I will keep digging around.  This is a very important aspect of the Real Estate industry and one of the chief incentives in becoming a home owner, so stay tuned.

I always do all I can to keep my clients informed, so they can 'Live the Life they Love'.