In early January 2013, the Senate and the House of Representatives passed legislation to prevent the so-called fiscal cliff; the bill was signed into existence by President Obama. What does this bill mean for the real estate industry? Read ahead to learn more about some of the provisions that will affect the housing market:
1. Real Estate Tax Extenders: The bill extends mortgage cancellation relief and the 10 percent Energy Efficiency Tax Credit for an additional year. Additionally, mortgage insurance premium deductions will continue through 2013, for filers who make less than $110,000 a year.
2. Estate Tax: Individual estates are exempt from estate tax for the first $5 million dollars and then taxed 40 percent for any additional amount; family estates are exempt from estate tax for up to $10 million and also taxed 40 percent beyond that amount.
3. Capital Gains: The rate for capital gains will stay at 15 percent for individuals earning up to $400,000 or for families earning up to $450,000; anything beyond those amounts will be taxed at 20 percent.
About the Author: Marietta, Georgia-based realtor Khatereh Rafiee stays abreast of changes in the real estate market through his membership with the Atlanta Board of Realtors. He has been serving clients with Weichert Realtors since 2004.
Khatereh Rafiee 