No Cliff Means More MONEY in Nyack Pockets

Dated: 01/07/2013

Views: 2912

Congress’ action to not allow us to fall off the hypothetical “fiscal cliff” is one that will definitely affect residents of Nyack, but anyone buying and selling properties no matter where you live.

Here you will find a list of the Real Estate provisions which the President signed into law last week.

Real Estate Tax Extenders
• Mortgage Cancellation Relief is extended for one year to Jan. 1, 2014
• Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012
• 15 year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012.
• The 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012.

The Mortgage Cancellation Relief extension is crucial for many who have had or will have debt to a bank from a foreclosure, short sale, or reduced loan principal which is otherwise known as and is taxed as income.  Since the economic crisis has caused so many people to fall into financial distress the last several years, resulting in the need to sell short or foreclose on their property, the government recognized this burden and did not require individuals to pay tax on their debt since 2007.  With the passing of this extension, individuals will not have to pay taxes on that debt through 2014.

Also, those paying PMI will be able to deduct that amount directly from their income for the years 2012 and 2013 if their income is under $110,000.  Many will benefit from this provision putting $$$$ back into their pockets, which will most likely find itself back into the local Nyack economy as spending.

Those with investment property will continue to reap the benefits of deductions for improvements to their properties.

And lastly, if you make improvements to your property which will benefit the environment, the government will reward you with up to a $500 tax credit.  

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Mary Lovera

In today’s world, our relationships are very important so much so that The Right Relationships make all the difference. Having grown up in a family business, lived internationally, and worked w....

1 comments in this topic

  • Posted by jocelyn DeCrescenzo
    01/19/2013
    Yet another great article- chock full of important info, yet written with the voice of compassion for those who've fallen through the cracks!, JossiePS, I really like the way you write- have you done that before for a living in your pre-real estate life???

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