CELL: 801-231-2051  TOLL FREE: 877-870-6380
 Welcome to the RealEstateInUtah.com Blog

2013-01-23 13:57:04
'Fiscal Cliff' Real Estate Provisions

“Fiscal Cliff” Real Estate Provisions from NAR

On Jan. 1 both the Senate and House passed H.R. 8 legislation to avert the “fiscal cliff.” The bill will be signed shortly by President Barack Obama.

Below is a summary of real estate related provisions in the bill:

Real Estate Tax Extenders

  • Mortgage Cancellation Relief is extended for one year to Jan. 1, 2014
  • Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012
  • 15-year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012
  • 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012

Permanent Repeal of Pease Limitations for 99% of Taxpayers

Under the agreement so called “Pease Limitations” that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers.  These limitations will only apply to individuals earning more than $250,000 and joint filers earning above $300,000.  These thresholds have been increased and are indexed for inflation and will rise over time.  Under the formula, the amount of adjusted gross income above the threshold is multiplied by three percent.  That amount is then used to reduce the total value of the filer’s itemized deductions.  The total amount of reduction cannot exceed 80 percent of the filer’s itemized deductions.

These limits were first enacted in 1990 (named for the Ohio Congressman Don Pease who came up with the idea) and continued throughout the Clinton years.  They were gradually phased out as a result of the 2001 tax cuts and were completely eliminated in 2010-2012.  Had we gone over the fiscal cliff, Pease limitations would have been reinstituted on all filers starting at $174,450 of adjusted gross income.

Capital Gains

Capital Gains rate stays at 15 percent for those in the top rate of $400,000 (individual) and $450,000 (joint) return.  After that, any gains above those amounts will be taxed at 20 percent.  The $250,000/$500,000 exclusion for sale of principle residence remains in place.

Estate Tax

The first $5 million dollars 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.  The exemption amounts are indexed for inflation.

 
Blog Archive
2019-01-28 09:56:07
The Gamble of Overpricing Your'e Home

2017-10-30 10:07:23
Salt Lake County single-family home median price reaches $330,000

2017-08-28 13:53:53
Most Salt Lake County Homes Sell for Under $350,000

2017-08-07 15:45:17
Median Single Family Home Prices Reach $327,000 in Salt Lake County

2017-02-07 13:11:41
Is There a Housing Bubble?

2017-02-07 13:03:48
Predictions for 2017: Total Residential Home Sales

2017-01-31 09:34:22
Q 4 Housing Report

2016-02-11 10:24:38
2016 Forecast for Salt Lake area Housing Market

2016-01-25 18:11:50
Local Home Sales Data 4th Quarter 2015

2015-04-27 11:40:31
Mistakes people make when selling a home

2015-04-27 11:36:59
Save for down payment or buy a home now?

2015-04-27 11:31:13
Salt Lake Home Sales Climbed 16% in the First Quar

2015-02-06 12:20:37
Salt Lake County housing market positive for 2015

2015-01-15 15:10:58
FHA Mortgage Insurance Premiums Reduced by 0.50%

2014-02-05 15:27:36
Salt Lake Housing Prices Returning near 2007 Highs

2014-01-27 16:51:39
Salt Lake home sales in 2013 are highest on record

2013-10-31 09:38:09
Condo sales at a 7 year-high

2013-10-30 10:45:15
Median single-family home prices reach 255k

2013-02-12 17:09:58
Salt Lake County 2013 Housing Forecast

2013-01-23 13:57:04
'Fiscal Cliff' Real Estate Provisions

2013-01-02 09:23:42
Cliff Bill Retains Mortgage Debt Relief

2012-12-10 11:26:33
Home Buyers need to be ready to compete!

2012-10-23 15:25:42
Median Single Family Home Prices Increase 7.5%

2012-07-23 10:31:38
'Medicare tax on Real Estate' update: 3.8 percent

2012-05-09 16:01:14
National Report says SLC is among top 10 places to

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.