Sunday, January 6, 2013

Real Estate Avoids the Fiscal Cliff


For all of you who were nervous about buying a home in Charlottesville or selling your home in Charlottesville because you were waiting to see just how far down it was to the bottom of the fiscal cliff, there is good new. Stephen Fishman, a tax expert, attorney and  author of multiple books on tax law has summarized the impact of the new bill that takes us back from the “fiscal cliff.” 

First and most importantly, the mortgage debt forgiveness act that was due to expire in December of 2012 is carried through to the end of the year. This ensures that anyone who is seeking principal mortgage debt forgiveness or needs to make a short sale, has the first $2 million of debt forgiven excluded from taxable income. 

Next in line of positives, and this is a big one if you are seeking to Buy a Home In Charlottesville, this bill resurrects the tax deduction Mortgage Insurance Premiums. This deduction had expired in 2011 but the new law extends it retroactively for 2012 and all the way through 2013. This is a huge bonus for new home buyers wanting to escape the rent trap and own a home and gain the other tax benefits as it makes using first time buyers programs that allow for less than 20% down be more affordable in the short term. 

In addition to various extensions to MID deductions, the $500 deduction for energy saving improvements remains intact through 2013, encouraging all improvements for those of you who want to be more Green in your home energy use. Need a new Dishwasher to make your home marketable? Save the receipt, its tax deductible up to $500 provided its certified Green! 

For the Full article, see Inman News at www.inman.com

If you are looking to: 

Please contact me: 
Quinton Beckham
Keller Williams Realty 
434.242.6212

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