The fiscal cliff deal and real estate

So we did go over the fiscal cliff for a day.  I survived, and am guessing you did also. I'm shying away from over analysis on this as the news media has that covered.  The National Association of Realtors provided members a summary.  I have culled a few morsels below.

 In general, real estate related provisions weren't earth shaking, with most affecting high income "filers" (defined varyingly as individuals earning more than $250,000 or $400,000 depending upon the provision). 

 Mortgage Cancellation Relief is extended for one year to January 2014.  In general this exempts taxes being paid on a "forgiven" debt such as a short sale.

The Deduction for Mortgage Insurance Premiums for filers making below $110,000 remains and was made retroactive to cover 2012.

Energy Efficient Tax Credit of 10% up to $500 for homeowners  making energy efficient improvements to existing homes.

Capital Gains rate stays at 15% for folks earning up to $400,000 (individuals) and $450,000 for joint filers.  Above that, capital gains will be taxed at 20%.  Thankfully the $250,000/$500,000 exclusion for the sale of a principal residence remains in place.

The "Pease" limitation on itemized deductions for high income folks applies to those earning $250,000 ($300,000 for joint filers).  Such filers gradually lose the value of heir total itemized deductions up to a total of a 20% reduction.  These limits can and will impact the mortgage interest deduction to an extent, but will have far less result than a hard dollar or percent deduction cap.

From a real estate point of view, I'm glad to see this package. It does a good job of preserving some elements that should help to keep the housing based recovery alive, while placing a bit of burden on higher earners.  In the weeks to come I'm sure we'll see LOTS of analysis; consider this a mere tidbit.