Found 2 blog entries tagged as tax relief.

Tax Relief on Mortgage Debt

Tax Relief on Mortage DebtRealtors, mortgage brokers and homeowners have all breathed a huge sigh of relief that tax relief on mortgage debt was part of the “Fiscal Cliff” legislation. Although this law has only been extended it will nevertheless have a positive impact on the market since it limits tax liability from short sales and workouts involving forgiven, deferred and cancelled mortgage debt and provides the continuation of alternatives to foreclosure. a reduction in foreclosure inventory is positive for home values.

This tax relief is of special benefit to upside down homeowners. The Mortgage Debt Tax Relief Act generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage…

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New "Fiscal Cliff" Tax Provisions Impact on Real Estate

Fiscal Cliff Deal Favors Housing RecoveryThere is good news for real estate in the new “Fiscal Cliff” tax bill that Congress finally passed after extensive debating sessions.

The main points of the legislation as they relate to Real Estate are outlined below:

  • Tax Relief for 1 year on Mortgage Debt forgiveness, deferment or cancellation.
  • Tax Deduction for Mortgage Insurance Premiums extended through 2013.
  • Extension of the Energy Efficient tax credit for existing home till the end of 2013
  • Pease/PEP phase out for deductions
  • Capital Gains Tax
  • Estate Tax

Tax Relief on Mortgage Debt

Debt relief on loan modifications, short sales and foreclosures became taxable at the end of 2012 when the previous law, which was voted to…

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