Recently, there has been much press coverage following discussions in Washington about the Mortgage Tax Deduction. The debate has mostly been focused on reducing the deduction for “high income” (over $250k) buyers and second homes.
However, a recent survey sponsored by the National Association of Home Builders (NAHB) and conducted by Public Opinion Strategies revealed that 75 percent of voters believe in tax incentives to promote homeownership. And these results are across all party lines.
Survey respondents indicated that it was “appropriate and reasonable for the Federal Government to provide tax incentives to promote homeownership.” In addition, 73 percent of those surveyed opposed eliminating the mortgage interest deduction.
Today the tax benefits of owning a home are clear. Home mortgage interest paid, in many cases, is fully deductible at tax time (assuming certain criteria are met). Points paid at closing are also deductible.
For the latest on mortgage tax benefits, check out this IRS publication.
While it may not be a summer best seller, it’s a sure-fire way to learn the ins and outs of taxes and homeownership – and make sure you are taking advantage of them.
By Lisa Green (Vice President of Loan Origination)