2103 Home Owner Tax Issues

How will 2013 affect home owners? According to information compiled from the National Association of Realtors below are some ways home  owners will be affected.

Mortgage cancellation relief is extended until January 1st, 2014.  This is for people doing short sales and not wanting to be taxed on the amount shorted to the bank.

Deductions for mortgage insurance premiums for filers making under $110,000 is extended through 2013 and is retroactive for 2012.

This one affects ALL homeowners, the energy efficiency tax credit of 10% (up to $500) was extended through 2013 for improvements to EXISTING homes.

Capital gains rate: This stays at 15% for those making under $400k/$450k.  After that tax rate is now 20%.  The $250k/$500k exclusion for the sale of a single family residence stays in place.

Estate Tax:  The first $5m in individual estates and $10m in family estates are now exempt from estate taxes.  After that the rate is 40%.

(Remember that any tax or accounting issues that affect you should be discussed with your personal attorney or CPA– this blog post is not to be construed as legal or financial advice. And information posted is subject to be changed by the Federal government at any moment.)

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