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Mortgage Forgiveness
March 6th, 2013 10:19 AM

Homeowners now have until January 1, 2014 to be granted mortgage debt forgiveness:

The Mortgage Forgiveness Debt Relief Act is extended to January 1, 2014.  In place since 2007, the act provided a tax break for homeowners who struggled through financial hardship such as a foreclosure or short sale and granted them mortgage debt forgiveness.  More than a quarter of all transactions involve distressed properties, according to the National Association of Realtors.  Homeowners should not be forced to pay a tax on money they have already lost with cash they never received.

Also, extended through 2013 is the 10% tax credit (up to $500) for homeowners who made energy efficiency improvements to existing homes.

The capital gains rate remains at 15% for individuals earning less than $400,000 and couples earning less than $450,000 per year.  Any gains above these amounts will be taxed at 20%.  The $250,000/$500,000 exclusion for the sale of a principal residence remains. 

Tax laws change often, so it is best to seek the advise of a certified tax accountant or tax professional for any particular questions or concerns. 

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Posted by Barbara Doeringer on March 6th, 2013 10:19 AMPost a Comment

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