Are you wondering how the Fiscal Cliff resolution affects your Centennial or Denver real estate, homes or real estate investments? Here’s some key points for your Centennial real estate.
A majority of people that have purchased homes in the last 10 years and put less than 20% down pay Mortgage Insurance premiums. The first good news is the Deduction for Mortgage Insurance Premiums is made retroactive to cover 2012 and extended through 2013 – for those tax payers making below $110,000.
The second bit of good news is for those working on a short sale in 2013 – the Mortgage Cancellation Relief is extended for one year until January 1, 2014. Before this relief was passed, you had the possibility of being taxed on the amount of your mortgage that was forgiven with a short sale. (ie, you own $250,000 on a home, the lender agrees to take a mortgage payoff of only $200,000, the balance of $50,000 could have been a taxable event).
The third piece of good news is $250/$500k capital gains exclusion for the sale of a principal residence (with certain requirements) stays in place. Capital gains rate stays at 15% for those filers making less than $400k individual/$450k joint return. Any gains above those amounts will be taxed at the new higher rate of 20%.
Of course, consult with your tax adviser on how these laws affect your specific circumstances and situation.
There are a few other provisions that you might find interesting. Read about those at: http://www.realtoractioncenter.com/docs/homepage/2013-NAR-Issue-Brief-Fiscal-Cliff-Real-Estate-Provisions-0102-1232.pdf
If you need a private consultation on your particular real estate situation, call or text me (Vickie Hall) at 303-944-1153 or email me at Vickie@DreamsCanHappen.com.