The
fiscal cliff deal passed last week by Congress allows home owners to keep the
deduction for private mortgage insurance (PMI) payments. It also extends the act which provides that
home owners will NOT have to pay income tax on amounts forgiven during a
mortgage workout, foreclosures, or deficiences that are forgiven on short sales.
PMI
is what buyers pay lenders each month if they have put less than 20% down on a
home. This protects the lender against
default on the home loan.
Homeowners also are allowed to keep up to $500,000 ($250,000 for individuals) in profits on the sale of their home. For the majority of home owners, there is no change. However for those earning above a certain level, the capital gains tax rises.
Congress
extended the tax deductions also for state and local property taxes, which
along with the mortgage interest deduction, are important considerations for
home owners and buyers.
For
more information on this read:
No comments:
Post a Comment