Posts
Real estate has been in the headlines for the last several years. The reason for all of the publicity is because of the jugernaut that is our industry. For many years the N.A.R. has been one of the largest lobbyist groups in Washington D.C., and a "home" has been intertwined into the American Dream since America's inception. Since real estate is such a focus in our country, there are many benefits that have been created for homeowners, two such benefits are the mortgage interest deduction and the property tax deduction. Below are some recent facts regarding the property tax deduction from "Eye on Housing":
A few facts about the deduction from 2010 data:
• The property tax deduction benefitted 32.9 million homeowning households for a total savings of $23 billion
• Almost 80% of the tax benefit was collected by households earning less than $200,000 in economic income
◦ Household income is the sum of all income earned by individuals filing on the same tax form; economic income includes items like employer-paid payroll tax and health insurance
• For households earning between $100,000 and $200,000, the average tax savings was more than $800.
This deduction has become just that much more important in recent years, as home prices have plunged while property tax payments have remained about the same, leading to higher effective tax rates on homeowners.
House Resolution 557, sponsored by U.S. Representative Pascrell of New Jersey, expresses support for this important homeownership tax rule.
There are great benefits for homeowners, we need to broadcast these benefits to get more renters into homes. Let's make it happen!
