WASHINGTON – Dec. 4, 2013 – Several federal tax breaks important to the real estate industry expire at the end of the year, and it remains to be seen when or if Congress will extend them.
These include the:
• PMI – a tax deduction for premiums for mortgage insurance provided by the Department of Veterans Affairs (VA), the Federal Housing Administration (FHA), the Rural Housing Service and private mortgage insurance
• Short sale principal forgiveness – the exclusion from taxable income of up to $2 million of debt a lender forgives on a principal residence sold through a short sale, mortgage restructuring or foreclosure
• Residential energy improvements – the maximum lifetime tax credit of $500 for energy efficiency improvements in a principal residence
• Accelerated property deductions – The Section 179 expensing deduction, which allows small business owners to deduct business property costs in a single year rather than over several years
• Bonus depreciation rules – a tax benefit that allows businesses to deduct 50 percent of the cost of qualifying business property in a single year
• Energy-efficient commercial buildings deduction
• New home energy improvements – a $1,000 or $2,000 credit for constructing or manufacturing qualified energy-efficient homes also are slated to expire this year.
Source: Inman News (12/03/13) Fishman, Stephen
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