Short Sale Tax Relief Extended Through 2013
Huge news for sellers in the process of a short sale or have been contemplating a short sale; The Mortgage Interest Deduction and the Mortgage Debt Forgiveness Act survived last minute budget cuts, and will extend through 2013. Both laws were considered by Congress and the President as they looked for ways to cut spending for 2013. Discontinuing the Mortgage Interest Deduction in particular would have been detrimental to the housing market, and would have cost new and existing homeowners hundreds of dollars per month.
The extensions mean that homeowners can continue to deduct mortgage interest and PMI on their primary home (and one secondary home), and that mortgage debt forgiven by banks during short sales will not be taxed federally. This information is not tax advice, just a summary of legislation. If you are interested in learning more, please contact me.
Real Estate continues to thrive, and with historically low rates it is a great time to buy or invest!