The Effects of the Fiscal Cliff Deal on Real Estate

Monday, January 14, 2013

The Effects of the Fiscal Cliff Deal on Real Estate

Congress waited until the last minute, but the legislation to avoid the “fiscal cliff” has been passed and soon will be signed by President Obama.

The law’s passage could affect you and your real estate transactions. Here are five provisions you should know about:

1. Mortgage Cancellation Relief is extended through January 1, 2014. This affects those who are going through a short sale. If, for example, you were to be forgiven $100,000 in debt, it now will not apply to your tax bill for that year.

2. Deductions for mortgage insurance premiums for filers making less than $110,000 is extended through 2013 and made retroactive from 2012.

3. A 15-year straight line cost recovery is available for qualified lease holders making home improvements. This mostly benefits commercial property owners. This has been extended through 2013 and made retroactive from 2012.

4. The energy efficiency tax credit is 10 percent of $500 for homeowners for energy improvements to existing homes. This has been extended through 2013 and made retroactive from 2012.

5. Also important to my clients is the fiscal cliff legislation’s effect on capital gains taxes. Capital gains rates stay at 15 percent for those at the top rate of $400,000 as an individual filer or $450,000 filed jointly. Any gains about those amounts will be taxed at 20 percent. The $250,000/$500,000 exclusion for the sale of principal, residential real estate is in effect prior to this deal. So if you are an individual or joint filer, the $250,000/$500,000 rule stays in effect.

This final provision is great news for the real estate industry, buyers and sellers, and current homeowners.

If you have questions about the new law and how it affects your real estate life, please call or email me and The Around Town Team, and we’ll be happy to help.

The Around Town Team (203) 727-8621 andy.sachs@cbmoves.com

About Andy

As one of the Nation's top 1% performing real estate agents, my team and I pride ourselves on the results we generate for our clients. Having spent several successful years in corporate America in sales, marketing, new product development, licensing, branding and management I was able to successfully translate these skills into real estate sales. My background is fundamentally different than the average agent. I treat my clients and their homes with a personal touch while also understanding how to fully market and promote them.

Andy Sachs
The Around Town Team
Keller Williams

Newtown, Connecticut

203-727-8621
AndySachs@Kw.com
thearoundtownteam.com

Andy Sachs and The Around Town Team Testimonials

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Christine - “He strategically priced my house and that definitely exceeded my expectations."

Cathy - "I really like Andy because he does a good job, he’s thorough, and he’s too the point. He was successful in selling our home for about the asking price and he was willing to meet the contractor when we needed repairs since we were 2 and a half hours away. We had a good experience and I would highly recommend Andy to anyone that needs a Realtor!"

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