Question: Allison, we are wondering how the “fiscal cliff” really affects us. Any thoughts?
Answer: Just when you never wanted to hear the words "Fiscal Cliff" again, I’m glad you asked! Here are some of the details of the changes in the law that affect property owners.
(This information was compiled by the National Association of Realtors
* Mortgage cancellation relief is extended until January 1st, 2014. This is for people doing short sales and not wanting to be taxed on the amount shorted to the bank.
* Deductions for mortgage insurance premiums for filers making under $110,000 is extended through 2013 and is retroactive for 2012.
* This one affects ALL home owners, the energy efficiency tax credit of 10% (up to $500) was extended through 2013 for improvements to EXISTING homes.
* Capital gains rate: This stays at 15% for those making under $400k/$450k. After that tax rate is now 20%. The $250k/$500k exclusion for the sale of a single family residence stays in place.
* Estate Tax: The first $5m in individual estates and $10m in family estates are now exempt from estate taxes. After that the rate is 40%.
This is just the down and dirty about how the newest changes may affect you and your family. Give us a call if you’d like more information – or, as always, speak with your accountant to get detailed info about your particular situation!
For answers to your real estate questions, call Allison at 970-468-6800. Email - Info@SummitRealEstate.com. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours. Want to know the value of your Summit County property? Visit www.SummitHomeValue.com