, the potential tax bills run as high as $100,000, simply because the owners will not be able to close their transactions by Dec. 31.
Congress s failure to extend the deduction for mortgage insurance premiums would be another blow to home owners. Under current rules, married owners filing jointly with adjusted gross incomes no higher than $100,000 ($50,000 for single filers) can write off mortgage insurance premiums they pay on their loans. On incomes up to $109,000 ($54,500 filing singly) they can deduct lesser amounts using a phase-down schedule.
In a letter to the Republican and Democratic leaders in both houses last week, three major trade groups the Mortgage Bankers Association, the National Association of Home Builders and the National Association of Realtors called for retention of the current deduction, along with mortgage debt forgiveness. On a $200,000 home, they said, moderate income buyers are now able to deduct between $600 and $1,000 using this provision money that is often important to their family budgets.
Energy savings through home improvements are also on the chopping block. Currently owners can write off expenses on insulation, high performance windows, hot water heaters and the like with a $500 lifetime cap. Come Jan. 1, they won t.
Bottom line: The outlook is dim for all three of these popular tax benefits. Though December legislative miracles happen, the odds this year are long. Don t bank on them for 2017.
Tags: holidays, Mortgages, property values
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