The final fiscal cliff deal passed by the Senate and House on January 1, leaves hope for the housing market. Bringing back a popular tax break on mortgage insurance premiums and debt forgiveness, the mortgage industry can breath a sigh of relief.
"The law dictates that eligible borrowers who itemize their federal tax returns and have an adjusted gross income (AGI) of less than $100,000 per year can deduct 100% of their annual mortgage insurance premiums," Compass Point said.
The deal also extends the Mortgage Forgiveness Debt Relief Act of 2007, set to expire Dec 31, 2012; "Homeowners who experience a debt reduction through a short sale or mortgage principal forgiveness are exempt from being taxed on the forgiven amount."
Read the entire article here:
Mortgage industry fares well in fiscal cliff deal, debt forgiveness law survives | HousingWire
No comments:
Post a Comment