I wanted to share an encouraging email we received from our President and CEO, Nancy Nagy, as well as the informative article she references…
“Our new year is off to a busy start here and in Washington D.C. A key piece of legislation that will influence our industry was signed in the last 24 hours. The “fiscal cliff” discussions over the last month included many real estate topics, and I am pleased to say that the outcome is one that is largely favorable to our clients as it relates to our industry. We have every reason to believe that the momentum in our market will continue as some important tax provisions remained:
• The Mortgage Debt Forgiveness Act was extended through 2013. This is good news for short sale sellers, who will continue to be an important market segment in 2013. Sellers whose lenders forgive mortgage principal in the sale process and who close in 2013 will not have to declare and pay federal income tax on the amount forgiven.
• The mortgage insurance premium deduction was also extended through 2013. This means that certain qualified borrowers who pay private mortgage insurance will be able to write off their payments on their federal tax returns.
I wanted to share this article from Realtor.org with you, as it goes into even more detail about the law and provisions related to energy improvement tax credits, commercial leasehold improvements, capital gains rates and estate tax exemptions.
Most importantly, this bill did not make any changes to the current deductions for mortgage interest or property taxes. Our clients will continue to enjoy those benefits of home ownership.
The signing of this law gives us and our clients greater certainty. We can feel positive that our legislators are supporting the housing recovery, and even more confident about our direction.”