Congress reached a bipartisan agreement on two key pieces of legislation: an omnibus spending bill to fund the federal government and a more than $600 billion tax bill that extends a number of tax policies, including some related to housing, construction and real estate.
National Association of Home Builders tax and policy maven Rob Dietz has details on nine items in the new legislation that should have material interest to home builders, remodelers, and real estate pros. What's more, as a bonus a few of the extensions have been "permanent-ized," and will not have to come up for another "extender" vote in two years. Dietz writes about perhaps one of the more important provisions here:
Deduction for Mortgage Insurance. Allows taxpayers, subject to an income cap beginning at $100,000, to deduct premiums paid for private mortgage insurance and FHA/RHA/VA insurance premiums. The deduction is extended through the end of 2016 and is expected to save homeowners $1.3 billion for tax year 2015.