INFO THAT HITS US WHERE WE LIVE
“Never tell your resolution beforehand, or it’s twice as onerous a duty.”–John Selden, English jurist and scholar
Our leaders in Washington aren’t telling if they’ve truly resolved to put our fiscal house in order, but at least last week’s deal to avert the fiscal cliff left housing a winner on most issues. First, they extended mortgage forgiveness debt relief through 2013. If they hadn’t done this, principal balances written off by lenders to help homeowners with underwater mortgages would have been treated as ordinary taxable income. The bill also re-established the deduction for mortgage insurance premiums for 2012 and 2013 for people with adjusted gross income below $110,000.
In addition, the compromise offers tax credits to homeowners making energy-efficient home improvements in 2012 and 2013. Builders get a tax credit on new homesconstructed in 2012 and 2013 that meet federal energy standards. U.S. manufacturers of energy efficient appliances also earn tax credits. Best of all, tax deductions for mortgage interest and property taxes were left untouched, but that battle isn’t over, since the politicians will soon be reforming the tax code. Always consult a tax professional for definitive answers on all these issues.
Orson Klender, Licensed Associate Broker; Keller Williams Real Estate
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