3-20-2014: Rep. Dave Camp’s proposal for reformed income tax structure probably won’t go anywhere since many special interest groups are crying about their tax preferences, but it merits consideration.
These 3 income tax deductions were scheduled to expire on December 31,2013 – did they?:
(1) Marginal mortgage debt over and above what the bank gets for the sale of the real property is normally considered taxable income, It is normally forgiven of those homeowners who gave up their property under foreclosure, deed in lieu, or short sale or who may have restructured their loan under HAMP/HAFA or other mortgage relief efforts including those through the large mortgage processing settlement. See IRS publication #4681. Mortgage Forgiveness Debt Relief Act of 2007 (MFDRA)
(2) Nope – not renewed: Mortgage insurance issued after 2006 is deductible. IRS Publication #936.
(3) Up to 10% of energy saving improvements (for a maximum deduction of $500) to a personal residence was deducible. More information at energystar.gov and see IRS tax tip 2013-48.
Do you think the US Congress will have enough time to extend any of these deductions – especially to give former homeowners tax relief from the mortgage debt forgiveness?
Source: WSJ, November 23-24, 2013