Income Taxation & Real Estate

H.R. 4853: Real Estate Provisions in the 2010 U.S. Tax Relief Bill

On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853) extending the Bush-era tax rates and a host of other expired and expiring provisions.

This legislation is not “paid for,” so there are no revenue raisers taken from real estate or other industry groups.

This package provides temporary extensions of its numerous provisions.  Some are retroactive, as well, so that the rules that had been in place previously will operate as if they had never expired.

Included in the bill are provisions that affect real estate investment and operations — such as energy-efficiency tax credits, capital gains, and more.  A few key provisions of interest to REALTORS® include:

  • Retention of Bush-era tax brackets through the 2011 and 2012 tax years;
  • Retention of the capital gains tax rate of 15 percent for assets sold or disposed of during 2011 and 2012;
  • Reduction of payroll taxes for employees and self-employed individuals during 2011;
  • Extension of numerous energy efficiency credits through December 31, 2011, including: the Energy Efficient New Homes, Energy Efficient Existing Homes, and Energy Efficient Buildings credits.

For more detailed information on the provisions of this bill affecting real estate, home owners, and REALTORS® as small business owners, please see the see the full summary.  Read a summary of the real-estate provisions in the tax bill – click here

For More:  Tax Extension Keeps Real Estate Status Quo, Speaking of Real Estate Blog

See Real Estate Provisions on the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 – click here.

Source: National Association of REALTORs

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This is for information only and is not the providing of tax or legal services.

By Harrison K. Long – Professional real estate representative, REALTOR and broker associate, HomeSmart Evergreen Realty – 949-701-2515 (phone) –   ExploreProperties@gmail.com – CALBRE #01410855 – Now serving as an appointed director at the California Association of Realtors – also an attorney member of the California State Bar association #69137

Christi Anthony Long, professional agent – CALBRE #01418859 – REALTOR, HomeSmart Evergreen Realty – 949-212-5427 (phone)

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