NAR Issue Brief Mortgage Debt Cancellation Tax Relief

Dated: 04/04/2014

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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.
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Donna Podesta

I am an experienced Realtor working in the Greater Hudson Valley Region which includes both Rockland and Orange County. My goal is to make my client's real estate experience a happy one. Because succe....

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