December 12th, 2013
Some interest rates are going up, others are holding steady and a few more are going down. It’s quite the volatile week.
Today we’ll look at four things you need to know in 2014 for estate tax planning,
The Motley Fool is reporting that no matter how much you earn or are worth, you should look into planning your estate carefully. In 2014, there will be four main things you should be aware of with estate taxes:
CNN ran a story about how a tax break for people struggling with mortgage payments ends on January 1, 2014.
If a mortgage holder was able to get some of the debt forgiven by having some principle forgiven, they weren’t taxed on it thanks to when Congress passed the Mortgage Foreclosure Debt Forgiveness Act in 2007. Unfortunately, that law is set to expire at year’s end, and the forgiven debt will now be taxed as income.
Consumer advocates consider the tax unfair: “The money being taxed was ‘phantom income’ that existed only on paper,” said Elyse Cherry, CEO of Boston Community Capital, a non-profit, neighborhood stabilization group.
It will also damage foreclosure-prevention efforts, said Cherry. Many at-risk homeowners could not participate in programs if a big tax bill accompanies the fix.
If you’re thinking of making updates to your mortgage, or getting a new one, now is the time to talk to your mortgage loan officer and see what you can lock down before December 31 when a lot more changes will happen.