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FISCAL CLIFF BILL – A VIEW OF THE CLIFF FROM ARLINGTON

FISCAL CLIFF

On January 1, 2013 a deal to avert the fiscal cliff was passed.  The purpose of the bill is to avoid widespread tax increases and deep spending cuts. It also contains provisions directed at maintaining the housing recovery.


This is good news for the real estate market. Here are some of the specifics about the plan:


Congress reinstated a federal tax deduction for mortgage insurance.

It extended tax breaks for people with mortgage debt erased through short sales and loan modifications.

The mortgage-interest deduction was left intact.

It includes a one-year extension of the tax break for homeowners whose lenders forgive part of their mortgage debt

The tax rate for individuals making more than $400,000 and couples making more than $450,000 will rise from the current 35 percent to 39.6 percent.

Itemized deductions will be capped for individuals making $250,000 and for married couples making $300,000.

Taxes on inherited estates will go up to 40 percent from 35 percent.

Unemployment insurance will be extended for one year for two million people.

The alternative minimum tax will be permanently adjusted for inflation.

(The Sacramento Bee, 1/5/2013, Clarendon Wealth Management)


Please contact me for additional details for how this affects your current housing situation. I am always happy to help!

Getting it SOLD – for YOU!

Ken Courtade

The Yes I Ken! Team

703.981.4646

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