Naples, Florida: 877-352-6404
Blue Bell, Pennsylvania: 215-542-7700

Real Estate Blog

Wednesday, January 30, 2013
Tags:   home buyers, Sales Price, 2012, Market, Home Sellers, Property, Vero Beach Real Estate

 

Home owners win two important tax benefits in the fiscal cliff deal.

The fiscal cliff deal Congress passed this week lets home owners keep the tax deduction for private mortgage insurance payments. It also says troubled home owners won’t owe income tax on amounts forgiven during a mortgage workout or foreclosure.

PMI is what you pay your lender each month if you put down less than 20% on a home, which protects the lender if you default on the home loan.

Without mortgage cancellation relief, home owners who have a portion of their mortgage forgiven as part of a workout plan, short sale, or foreclosure would have to pay income tax on the forgiven amount.

In addition, the American Taxpayer Relief Act of 2012 lets home owners continue to keep up to $500,000 ($250,000 for individuals) in home sale profits tax-free. Only home sellers whose income is $450,000 or above (or singles earning $400,000 or more) and who net more $500,000 on the sale of their home would pay taxes on the excess capital gains. For the vast majority of home sellers, there’s no change.

For those earning above the $400,000-$450,000 threshold, the cap gains rate would rise to 20% from 15%.

Congress extended the tax deductions for all mortgage insurance premiums and for state and local property taxes, which, along with the mortgage interest deduction, are important tax considerations for home owners and buyers.

Comments: 0
There are no comments for this post.
Post a comment below
LEAVE A COMMENT
 
Name
 
Email Address
 
URL
 
 
Comment
 
Captcha

Type the characters you see in the picture above.
 
 
< Back
Search by Map
Waterfront and Golf Communities
Foreclosure Search
Bristol Resources
Family of Services
What's my home Worth?
Mortgage Calculator and Rates
Investment and Commercial
Great Schools
Receive Email Alerts
Client Login
Bookmark This Site
Updated: Monday, September 24, 2018

5 Tips for Economically Renova...
In 2017, homeowners spent an average of 15,000 on house renovations. However, you need to ta...

How to Create Stairs That Get ...
Paint Themldquo;Can you paint stairs“" The short answer: Yes Painted stairs a...

6 Creative Things to do With Y...
Paint ThemYou can find as many painted pumpkin tutorials as you can pumpkins in the...

Copyright ©2018Realty Times®. All Rights Reserved

SOLD - 465 18th Avenue South
We are happy to announce 465 18th Avenue South in Aqualane Shores closed on July 13th, 2018! ...

Holiday Open House
You are invited to join RMC Realty International Friday, December 1st from 2-5 PM as we...