The National Association of REALTORS is applauding the resolution of the “fiscal cliff” crisis and has produced a list of what passage of the bill means to housing.
To quote NAR:
— Mortgage cancellation relief has been extended until Jan. 1, 2014.
— The deduction for mortgage insurance premiums is extended for taxpayers making less than $110,000 and is retroactive to cover 2012.
— The 10 percent energy efficiency tax credit is extended through 2013 for homeowners making improvements to existing homes.
— The capital gains tax rate remains at 15 percent for individuals making $400,000 ($450,000 for joint filers). The $250/$500k exclusion for the sale of a principal residence remains in place.
— The first $5 million in individual estates and $10 million for family estates are now exempted from the estate tax. After that, the rate will be 40 percent, up from 35 percent.