The House and the Senate have passed tax extenders (and the President has indicated that he will sign) relevant to Real Estate matters:
the tax exclusion of imputed income from the discharge of indebtedness for a principal residence;
the tax deduction of mortgage insurance premiums;
the tax deduction of contributions of real property interests for conservation purposes.
Of relevance to tax professionals, mortgage insurance premiums remain deductible through the end of 2014 and, for those who have “experienced” a short sale in 2014, if certain qualifications are met, the likely otherwise taxable “cancellation of indebtedness” income (income and, therefore, tax, on shortfall on mortgage payoff) can be excluded from income.
For all of these deductions and exclusions, please see your tax professional – but these tax extenders are good news for affected parties.
Best wishes to all for a Merry Christmas Season.