The United States Congress and President Obama extended more than 50 Tax Breaks before the end of 2014. Of course the tax credits are beneficial to every citizen, although real estate industry players are considered to be the greatest beneficiaries of the extended tax credits. Here are some of the recently extended tax credits outlined below.
If you have a deposit of 20% or less to put down when buying a home, you will be required to pay for mortgage insurance. This protects the lender against default. There is a tax break that allows you to deduct the cost of your premiums if you itemize your deductions.
Before the Mortgage Forgiveness Debt Relief Act in 2007, Americans paid taxes even on forgiven debts. The tax was a lot for someone who could not afford to clear their mortgage, and who had lost their homes to foreclosure. The extension of this tax credit means that any debt forgiven on a primary residence (up to $2 million) will not be taxed.
Homeowners could get a tax credit of up to $500 when improving their primary residences to become more energy efficient. If you make any kind of improvement that saves energy on your primary residence, you can get up to $500. These improvements may include: new roof, installing new windows, air conditioning and furnace among many others.
These are among the recently extended tax credits that can have a positive influence in America’s real estate industry.