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Gavel on sounding blockDistressed homeowners and commercial property investors with transactions in 2014 will enjoy a few more days of tax breaks following the approval of legislation by Congress last week.

The National Association of REALTORS® lauds the passage of these tax extensions, which will continue to prevent tax liability for underwater borrowers on any mortgage debt either cancelled or forgiven by a lender. The legislation will also benefit commercial property investors, who will see a one-year extension of the 15-year depreciation schedule set for energy-efficient upgrade deductions and leasehold improvements.

“NAR applauds Congressional leaders in both chambers for their effort to pass this legislation before adjournment,” NAR President Chris Polychron said in a statement. “Realtors® strongly supported the bipartisan Mortgage Forgiveness Tax Relief Act, which was included in the package.”

Tax provisions for 2015 remain uncertain as Democrats turn over control of the Senate. Strategists at the NAR 2014 REALTORS® Conference & Expo expressed skepticism that the now Republican majority will address tax reform or real estate-related tax issues. Polarization, speakers argued, will likely halt any legislative victories for housing reform.

For more information, visit www.realtor.org.

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