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.
