With the fiscal cliff bill (known as the American Taxpayer Relief Act of 2012) having passed at the last moment we have avoided falling off of the fiscal cliff. Regardless of personal opinions over the effectiveness or ineffectiveness of this bill it will have a positive affect on real estate in Encinitas and for Encinitas homeowners.
Here are a few things you should know about the bill and how it might affect you.
- Current tax rates were extended for households that earn less than $450,000 and $400,000 for those that file individually. For those making above this amount taxes on ordinary income rises to 20%.
- For the vast majority of those with homes for sales in Encinitas there will be no change; the exception being if your income is above $450,000 and the gains on the sale of your home exceed $500,000.
- The deductions for mortgage insurance premiums have been extended, as has the extension of mortgage cancellation relief that assists those that have had a portion of their mortgage debt forgiven by the lender to remain untaxed.
While this is certainly not the end of this story, as massive spending cuts are going to be discussed again in the next few months, there is good news for those that were concerned about how this would affect their Encinitas homes for sale. Keep checking back for more developments.