Last night the United States House of Representatives passed legislation extending through 2014 a number of tax breaks critical to the residential and commercial real estate industries. The United States Senate has not yet scheduled a vote on the measure.
By a vote of 378 to 46, the House approved a one-year extension of the income tax exemption on mortgage debt forgiven in a short sale or a workout for principal residences. The bill also extends through 2014 the 15-year straight-line cost recovery period for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements.
In addition, the legislation would extend tax credits and deductions for energy-efficient new homes and commercial buildings.
The National Association of REALTORS®, NAIOP, and other industry trade groups will continue to work with their members to encourage the Senate to take up and pass the bill before the scheduled end of the Lame Duck Congressional session, likely around Friday, December 12th.
You can read a detailed summary of the bill’s tax provisions HERE.