Real Life as a Real Estate Agent: Senate 'Cliff' Bill Retains Mortgage Cancellation Relief

Thanks!
Sherri Spears, REALTOR®
Keller Williams Realty

2013 Local Chapter President
Women's Council of REALTORS®
Stuart-Martin County Chapter

2012 Entrepreneur of the Year
Women's Council of REALTORS®
Stuart-Martin County Chapter

(t) 772-341-4957
(f) 888-398-4957
(w) www.sherriflrealestate.com

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---------- Forwarded message ----------
From: "Victoria Coyne, Director of Short Sale Innovations" <vcoyne@short-sale-innovations.com>
Date: Jan 2, 2013 10:10 AM
Subject: Senate 'Cliff' Bill Retains Mortgage Cancellation Relief
To: <sherriflrealestate@gmail.com>

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Important Message from Short Sale Innovations

January 2, 2013

Dear Sherri,

Senate 'Cliff' Bill Retains Mortgage Cancellation Relief

Tax rates would remain the same for most households and mortgage cancellation relief is extended in a budget package passed by the U.S. Senate early this morning to avert the so-called fiscal cliff. The House today could take up the bill, which NAR has been monitoring closely because the fiscal cliff's automatic tax increases and federal spending cuts involve programs important to real estate and impact household wealth. Based on what the House does, the provisions in the Senate bill could change in the final bill.

A number of what lawmakers call extenders are in the bill. Extenders keep in place expiring tax provisions. Of most interest to real estate, the bill would extend mortgage cancellation relief for home owners or sellers who have a portion of their mortgage debt forgiven by their lender, typically in a short sale or foreclosure sale for sellers and in a modification for owners. Without the extension, any debt forgiven would be taxable, which, for underwater households, represents a financial burden.

Also, extended are deductions for mortgage insurance premiums and for state and local property taxes, which, along with the mortgage interest deduction, are important tax considerations for home owners and buyers.

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