Congress recently extended two important tax break for homeowners:
1. Mortgage insurance (MI) paid with your mortgage can be claimed as a deduction on your Schedule A along with your mortgage interest and real estate taxes. This extension is retroactive to January 1, 2014 so it covers MI paid all year. Income restrictions apply.
2. Mortgage debt forgiven in a short sale in 2014 will NOT be taxable. In a short sale, a house is sold for less than the balance of the mortgage. Usually, the mortgage company will issue a 1099 to the borrower for the difference between the mortgage balance and the proceeds of the short sale and that amount is taxed as ordinary income.
Make sure you consult a tax professional for questions regarding these or any other tax breaks available to homeowners.
For questions regarding your mortgage, or to apply for a new mortgage, please contact me at BarkerLoans@gmail.com or 708.473.7688.
