By Miriam Perlmutter, REALTOR (B), BIC – Taken from a recent article by the National Association of Realtors, below are the real estate provisions as highlighted in the “Fiscal Cliff” Bill passed through congress on January 1st and signed into law by President Barack Obama the following day.
Real Estate Tax Extenders
The following is extended through 2013:
- Mortgage Cancellation Relief
The following are extended through 2013 and made retroactive to cover 2012:
- Deduction for Mortgage Insurance Premiums for filers making below $110,000
- 15-year straight-line cost recovery for qualified leasehold improvements on commercial properties
- 10% tax credit (up to $500) for homeowners for energy improvements to existing homes
Permanent Repeal of Pease Limitations for 99% of Taxpayers
“Pease Limitations” — that reduce the value of itemized deductions — are permanently repealed for all taxpayers with the exception of those individual filers earning more than $250,000 and joint filers earning above $300,000.
For those affected, the amount of adjusted gross income above those thresholds is multiplied by 3% and used to reduce the total value of the filer’s itemized deductions, with the total amount of reduction not exceeding 80% of the filer’s itemized deductions.
Initiated in 1990, continued through the Clinton years, and gradually phased out as a result of the 2001 tax cuts, “Pease Limitations” were completely eliminated in 2010-2012.
Capital Gains
Capital Gains rate stays at 15% for those in the top rate of $400,000 (individual) and $450,000 (joint) return. After that, gains above those thresholds are taxed at 20%.
Estate Tax
The first $5 million in individual estates and $10 million for family estates are now exempted from the estate tax. Due to inflation, the rate has increased from 35%-40% for estates above those thresholds.Learn more about these provisions.
As the Broker-In-Charge of Kauai’s north shore operations, Miriam Perlmutter is tasked with overseeing some of the top real estate brokers in the State of Hawaii, and hundreds of millions of dollars in sales each year. Her real estate sales career has been centered in team-work, asset management, negotiation and sales. She holds a bachelor’s degree in computer graphics and has over a decade of hands-on experience creating successful marketing materials. Miriam’s expertise in technology, design, and marketing are a natural fit at Hawaii Life, along with her talent for developing creative solutions to the market’s challenges. She handles a high-volume of clients with a systems-oriented approach, giving each individual client the attention and service they need. Miriam lives in Princeville Resort on Kauai’s north shore with her husband Jack and their daughter Isabella.
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Many factors are there which affects a business .2013 will be the most profitable year for the people who want their own home. To build an own home is very tough. But this time though the investment in real estate sector is more so rate of sale is decreased which is a good news for the people want to buy home. Real estate is a seasonal business. Ups and downs are there. But in the year 2013 there is great turn around in this sector. In 2012 the Real estate experts used to say that it’s declined 25% where as this year the increment is up to 30%In future also it may vary in a good percentage. This blog defines the rate and percentage of increment which is really profit for consumers.
Of course fiscal latest reports and statistics reflect strong impact on so many other business and services areas. Everything depends on costs of living and how these influence affordability rate by varying so much. Come to think of it, I feel lucky now for having managed to sign a deal with the https://www.rickyaranda.com/ team. Who knows how things may have turned out in the end, otherwise.
Thanks for this! I wasn't aware of all of this. This is very tricky business and I think we should know something about all this money and how it's being spent.
I recently bought a house in a nice community using the real estate services from Shook. So you should take my advice: the first thing you need to do is decide how much you can afford. You will need to look at how much money you have available yourself and how much you can borrow. In conclusion, buying your first home is both exciting and nerve-wracking, but if you are calm, everything will be ok.
My husband keeps suggesting that we should change this big house for a flat, now that kids are all grown up and left home. In one way, I know he is right and this would be reducing costs a lot for us, but I must confess I am not ready to give up on my bonsai tools, on the gardening and all the ways through which I managed to make this house a home throughout all these years.
I personally think that real estate is unbeatable as an industry, as a heavy part of the economy. I think this industry will carry on, even with ups and downs along the way, as long as world exists as we know it. I don`t know much about rises and falls in this field, every time I moved out, I asked for help from RealEstateEcuador.com and they made a terrific job.
Initiated in 1990, continued through the Clinton years, and gradually phased out as a result of the 2001 tax cuts, “Pease Limitations” were completely eliminated in 2010-2012.
She handles a high-volume of clients with a systems-oriented approach, giving each individual client the attention and service they need. Miriam lives in Princeville Resort on Kauai's north shore with her husband Jack and their daughter Isabella icon brickell rentals
Luckily for those ones who managed to get beyond the Risk Point and covered themselves with the right insurance packages. I am sure that they are the ones who get leverage on a fresh start, even if impact has been huge. It is best in life to assess material possesions and protect them, always.
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