Congress Passes Tax Bill with Homeowner Provisions

President Obama is expected to sign a bill passed by both the House and Senate that grants extensions on a number of tax benefits enjoyed by individuals and corporations, including a number of temporary provisions that the real estate industry sought.

For instance, the bill extended a benefit that relieved the tax burden for mortgage debt forgiveness, which protects underwater homeowners from steep taxes on a workout or a short sale. The bill also revived an expired tax credit of between $1,000 and $2,000 for energy-efficient new homes for two years.

"These tax extenders offer critical support for consumers, homeowners, commercial property investors and small businesses alike," Tom Salomone, president of the National Association of Realtors, said in a public statement following the bill's passage.

"A strong economy requires certainty, and this proposal gives a healthy dose of it to millions of American taxpayers."