(1)  mortgage cancellation relief is extended for another year.   Households who have  mortgage forgiveness by a lender in 2013 will not have to pay tax on the amount forgiven.  (2)  mortgage insurance premiums remain deductible.  Tax filers making less thatn $110,000 who pay mortgage insurance or PMI can deduct the cost of their premiums in their 2012 & 2013 returns.  (3)  15 year straight-line cost recovery on leasehold improvements is extended.  For qualified leasehold improvements on commercial properties thru 2013 & includes 2012.  (4)  energy efficiency tax credit, up to $500, for home owners who make energy efficiency improvements to an exisiting home for 2012 & 2013.                              CAPITAL GAINS RATE STAYS AT 15% FOR A TOP INDIVIDUAL RATE OF $400,000.  Also the 1st $5,000,000in individual estates & $10 million for family estates are now exempted from the estate tax.

Rural land markets reflect influences from its sizable and growing urban areas.  Demand for recreational use competes with timber production.  57% of the land is used for grazing with 33% to timber production.  The recession of 2009 caused a drop in prices and in 2011 land in this region sold for $2,979 per acre, which matches the average prices in 2005.  In 2009 a meager volume of 606 sales, but a present 3% DECLINE suggested that recessionary forces continue to dampen demand in our region of Northeast TX.  This according to a TX A&M Real Estate Center research economist, Dr  Gilliland and assistants.

in the “fiscal cliff” bill that extends this act.   This is an opportunity to list your home with a real estate agent and do a short sale through this program.  Appointments are being set in Smith County to sign up for this program and call Carolyn Bain, Bain Real Estate at 903-571-2191 to get further details.  This is one opportunity to try to relieve yourself of your mortgage that is choking your family.