There are three important tax breaks that the Federal government has afforded us as we all unwillingly move closer to our appointment with our CPA - or box of tax software as it may be. Suze Orman takes a moment to share. Here are the highlights:

• For the Home Seller - If you sold your home for less than what you owed the bank (called a short sale), you do not have to pay income taxes on the difference now - called Lender Forgiven Mortgage Debt. Example: You owed $200,000 on your mortgage, and you sold it for $150,000. The difference is $50,000. You won’t pay taxes on that $50,000 now.
• For the Home Buyer - When you purchase a home with less than 20% down, you have to pay PMI (Private Mortgage Insurance). This is typically $50-60 per month, per $100,000 of mortgage. If your annual income is under a $100,000, your PMI is tax deductible.
• For the Home Seller - Up to $500,000 of profit on a home sold within two years of a spouse’s death may be excluded from capital gains tax. Previously, this would have only been $250,000.

I tend to concern myself more with cash flow and “how is this affecting me now”, as opposed to at tax time, but I do appreciate being able to take advantage of these programs when applicable.