Thursday, February 28, 2013

The Fiscal Cliff: Updates for Homeowners

If you own your home, here are important facts that may affect you:

  • The mortgage insurance premium deduction now extends through 2013 and is retroactive for 2012 for people who make less than $110,000.
  • Mortgage cancellation relief now extends until January 1, 2014.
  • The Capital Gains Tax exclusion for the sale of a Main Home remains unchanged at $250K for an individual, and $500K for married couples, as long as you have lived in the home 2 out of 5 years prior to the sale.
  • The first $5M of an individual estate ($10M of a family estate) is now exempt from estate taxes. After those amounts, the estate tax is 40%.
  • The Energy Efficiency Tax Credit of 10% up to $500 was extended through 2013 for improvements to existing homes.
    (from the National Association of Realtors)
Single Family Nov '12 - Jan '13 Nov '11 - Jan '12 % Change
 Number of Sales 814 699 16.5%
 Median Price $610,000 $595,000 2.5%
 Condominium Nov '12 - Jan '13 Nov '11 - Jan '12 % Change
 Number of Sales 1,045 931 12.2%
 Median Price $330,000 $290,500 13.6%
                                                                Information Provided by Prudential Locations

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