It’s tax season! So in the spirit of the season (might as well look at it as a positive!), here are some things to think about, from Hilary.
The massive tax-extension law that President Obama signed at the end of 2010 keeps tax brackets and capital gains rate at existing levels for two more years and maintains other key real estate provisions such as the 15-year cost recovery period for leasehold improvements, 25 percent depreciation recapture rate, and the deductibility of expenses related to certain necessary remediation work.
The law also extends some energy efficiency tax benefits for up to two years and holds onto the deductibility of mortgage insurance premiums. This is important to anyone selling their home who would have been hit with capital gains taxes and those who have made improvements to their properties and were planning on writing off those expenses.
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