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New Tax Breaks to Save You Money

In the attached video, Suze Orman highlights three new tax breaks that every home owner should know. Tax breaks for owner's selling their home as a "Short Sale," owners with Private Mortgage Insurance (PMI), and owners who lost a spouse and are looking to save taxes on Capital Gains.

1. Loan Forgiveness Tax Break

For owners who need to sell their home at a price for less than what is owed to the bank, they do what is called a Short Sale. The new law does not require income tax owed on the amount of loan forgiveness for a primary home bought or improved upon between 1/1/07 - 12/31/09. The loan forgiveness is the amount of debt relieved.

2. PMI - Private Mortgage Insurance Tax Deduction

PMI is required on loans when a borrower puts less than 20% down on a home. PMI tax deduction is extended through 2009 if the homeowner's income is less than $100,000 a year.

3. Capital Gains Tax Exemption

There is also a new tax law change to the $250,000 per person Capital Gains tax exemption. A married couple is able to claim up to $500,000 exemption, up to $250,000 each. The new law offers help to cover a lost loved one's exemption. Now, if the home has been a primary residence, the homeowners have lived there 2 of the past 5 years, and they sell the home within 2 years of the spouse passing, they can claim the additional $250,000 exemption.

Watch the attached video for further details and consult your accountant or financial advisor to determine if you can take advantage of these new tax breaks. 

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com