|No Mortgage Tax in the Highway Bill:
In a win for the entire real estate industry, this month Congress passed, and the President signed, a bi-partisan 5-year transportation bill that excluded the use of “g-fees” (in essence, a tax on mortgages) – that were previously included as part of the funding mechanisms in the version passed by the Senate last summer. National REIA raised concerns about the issue with industry partners and has been following it closely.
As of this update Congress has yet to reach an agreement extending a tax break that forgives taxes on short sales. The provision relieves sellers of paying income tax on the difference between what they owe on the mortgage and the amount raised in the sale – especially if the lender reduces the owed principal amount. The tax break expired at the end of 2014 and is widely expected to be reauthorized in the final weeks of 2015. National REIA has been working on this issue at the national level and is pushing to make the language permanent.
Seller Finance Relief:
While the long-anticipated reform bill has not been introduced we still expect that it will happen sooner rather than later and are monitoring this issue closely.
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