Sunday, May 27, 2012

REALTORs(R) Supporting the American Dream of Home Buying and Ownership

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REALTORs® support the American dream of buying and home ownership.
 
Many of us believe that REALTOR® support is and should be special for those who are financially qualified.

The National Association of REALTORs® legislative and business meetings Washington DC this month involved the large number of real estate agents urging lawmakers to “protect the American dream” of home ownership.

REALTORs® want to maintain the "status quo" on four tax code provisions - which would help homeowners, prospective buyers, inspire home builders and support the nation’s economy.

  • Mortgage interest tax deduction 

REALTORs® oppose any legislation that would reduce or eliminate the mortgage interest deduction, the federal income tax deduction for interest paid on debt secured by a first or second home.  IRS Publication 936 provides detailed guidance on whether home mortgage payments are tax deductible.

  • Property tax deduction

REALTORs® oppose any legislation that would reduce or eliminate the federal deduction for state and local property taxes.  

  • Capital gains

REALTORs® support that homeowners are allowed to exclude from taxation the first $250,000 ($500,000 for married couples) of capital gain upon the sale of their home - still a strong incentive for home buyers.  IRS Publication 523 addresses the tax implications of the sale of your home. 

  • Mortgage Forgiveness Debt Relief Act of 2007

REALTORs® advocate extending the Mortgage Forgiveness Debt Relief Act of 2007, which is set to expire later this year on December 31, 2012.

This law directs the IRS not to tax homeowners who have had certain mortgage debt forgiven by their lenders.  Before this law was started, this tax on so-called “phantom income” was challenging on two levels for people losing their homes in foreclosure.  Why?  "Forgiven debt" is generally taxable income.  

Unless this tax law - protection for homeowners - is extended beyond December 31, 2012, millions of underwater homeowners will be hurt even more than they are now.  These homeowners will be taxed on amount of money they were unable to pay to lenders - forgiven debt - prior to foreclosure.

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Source of information is article by Harvey S. Jacobs at WashingtonPost.com.  This is for information only and not the providing of tax or legal services.

Professional REALTOR® agent representation - help for property owner/sellers, private trust estate representatives, estate administrators and executors, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County CA real estate

Posted via email from Explore OC Homes

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