NAR Issue Brief Mortgage Debt Cancellation Tax Relief

Dated: April 4 2014

Views: 364

On April 3, 2014 the United States Senate Finance Committee agreed to a bipartisan bill to reinstate close to 50 tax provisions that expired at the end of 2013. Among the real estate provisions included in the “extenders” package are tax relief for mortgage debt forgiveness, 15-year cost recovery for qualified leasehold improvements, election to expense certain qualified real property, and deduction for energy efficient commercial buildings. All of these provisions are retroactively extended to cover a period from January 1, 2014 to December 31, 2015.

NAR has been working on an extension of these provisions since the previous extension was passed on New Years’ Day 2013. While this is an important first step toward having the 2-year extension enacted into law, there some significant hurdles left to overcome.The extension of the tax relief “costs” money to the Treasury. The Joint Committee on Taxation estimates that a two-year extension of the mortgage debt cancellation relief would cost $5.4 billion. This will create significant push-back by some Members of Congress and Senators who will insist that amount be offset by raising taxes elsewhere or cuts in spending – an ongoing debate in Congress. Also, the House Ways and Means Committee Chairman Dave Camp has expressed a desire to make some of the “extender” provisions permanent, while allowing other provisions to expire. Reconciling which provisions are extended, for how long, and whether they are paid for, are still issues without consensus between the Senate and the House.

Partially Reprinted from National Association of Realtor website.
Blog author image

Mary Lovera

In today’s world, our relationships are very important so much so that The Right Relationships can make all the difference. This year marks my 20th year in Real Estate. In that time, I’ve happ....

Want to Advertise on this Site?

Latest Blog Posts

Cinco De Mayo Festivities Keep Nyack Dancing

Cinco de Mayo is a celebration of Mexican culture which commemorates the unlikely victory of General Ignacio Zaragoza Seguin over French forces at the battle of Puebla May 5th, 1862. The celebration

Read More

Rockland Has A Cidery In Orangeburg

Who knew? Most people head to Orange County for the nearest place to sip locally brewed hard cider. But, one only needs to make their way to Van Houten Farms in Orangeburg to enjoy locally brewed

Read More

Growing Your Own Flowers In Nyack

Every year I think I'm going to plant a flower garden that would rival the ones that my Grandmother had (flowers everywhere, every possible kind, and all of them were gorgeous.)

Read More

10 Digit Dialing Coming To The Hudson Valley

Residents of much of the Hudson Valley will soon be required to dial all 10 digits to make local calls within their areas codes after the Federal Communications Commission adopted 988 as a new

Read More
Fair Housing Icon NY Fair Housing Notice