The National Association of Realtors reports in its January/February 2013 REALTOR Magazine that with the ‘fiscal cliff’ debate, the legislation ultimately extended several tax measures that affect homeowners throughout the country:
1. Mortgage cancellation relief is extended for another year: amount of mortgage debt forgiven by a lender in 2013 will not be taxed
2. Mortgage insurance premiums remain deductible: homeowners who file returns for 2012 and 2013 making less than $110,000 can deduct the cost of their mortgage insurance premiums
3. Energy efficiency tax credit: a 10% tax credit (up to $500) will continue to be allowed for energy efficient improvements made by homeowners during 2012 and 2013.
Call me if you have any questions about these issues that are important to you as a homeowner!