As the fiscal cliff debate raged, the NATIONALAsso-
CIATIONOFREALTORS@was intent on not adding to
the confusion by speculating on what might happen
given one scenario or another. Yet, I can't overstate
how much work was happening behind the scenes
to minimize any potential impact on real estate.
The result was that on Jan. 2, the same day the
House passed the bill to avert the fiscal cliff, we were
providing information to all of our state and local associations-
and to you via REALTOR.org-about
specific provisions of the bill that affected real estate.
While the debate was underway, we felt it was a
good time to reaffirm our support for the mortgage
interest deduction. Although discussions to limit
the MID never progressed to an actual proposal,
we wanted to remind lawmakers that the MID
benefits primarily middle-income families, and 'any
change to it could harm housing and the economy
as a whole. The Dec. 3 Call for Action generated
record levels of response's from REALTORS@Y.ou let
Congress know loud and clear that we'd be vigilant
in opposing any plan that modifies or excludes the
deductibility of mortgage interest.
While the legislation that was signed into law
in January did not affect the MID, its passage represents
a step in a continuing effort by NAR to protect
the ability of American families to own a horne,
The legislation also extended several tax measures
r ".' l' ~ __ .•... L ~__ ~~~ •.•
• Mortgage cancellation relief is extended
for another year. Households that have mort-
, gage debt forgiven by a lender in 2013as a result of
a modification, short sale, or foreclosure will not
have to pay tax on the amount forgiven.
• Mortgage insurance premiums remain
deductible. Tax filers making less than $no,ooo
who pay for mortgage insurance' can deduct the
cost of their premiums on their 2012 and 2013tax
returns.
• IS-year straight-line cost recovery on
leasehold improvements is extended. For
qualified leasehold improvements on commercial
properties, 15-year depreciation is extended
through 2013and made retroactive to cover 2012.
• Energy efficiency tax credit remains in
force. The IO percent tax credit, up to $500,
for home owners who make energy efficiency
improvements to an existing home is extended
through 2013and made retroactive to cover 2012.
Debate will continue in the coming months on longterm
solutions to the issues left unresolved by the fiscal
cliff bill. As Congress addresses those issues and
broader tax reform, you can bet that we'll continue
our vigilance on behalf of REALTORS"
Provided by FloridaCapecoralrealestate
.
Cape Coral Florida
Provided by CapeCoralRealEstate
