Here are a few of the provisions in the Fiscal Cliff Bill and the tax laws for 2013.

• Filers making below $110,000 can still deduct mortgage insurance premiums through 2013–plus this was made retroactive to cover 2012.

• Mortgage cancellation relief–which is for home owners or sellers who have some amount of their mortgage debt (on their primary residence) forgiven by their lender in a situation such as a short sale, foreclosure or modification–was extended for one year to January 1, 2014.

• The 10% tax credit (limited to $500) for homeowners for energy improvements (energy efficiency tax credit) to existing homes is extended through 2013 and made retroactive to cover 2012.

• The rate for Capital Gains will remain at 15% for individuals at the top income amount of $400,000 and $450,000 for a joint return. Gains over and above these amounts will be subject to a 20% tax. Remaining in place is the $250/500K exclusion for the sale of a principal residence.

• Individual estates will have the first $5 million dollars exempted and family estates will have $10 million exempted.

• Qualified leasehold improvements on commercial properties have been extended through 2013 and retroactive to cover 2012 and are subject to a 15 year straight-line cost recovery.

To understand how all of this impacts your individual situation, feel free to contact us anytime at 651-647-4935.