Deficit Commission Considers Removing Tax Deductions for Home Owners
Posted by Brian Sims on Tuesday, October 26th, 2010 at 3:38pm.According to an article in the Wall Street Journal yesterday, President Obama's Deficit Commission is considering removing long standing tax deductions for home owners. Currently, married home owners can deduct all of the interest payments on their mortgage up to $1million. The mortgage amount is reduced to $500,000 for single home owners.
This means that for those who are currently using the maximum deduction, their taxable income could potentially increase by as much as $60,000 or more per year! The Deficit Commission has been tasked with balancing the national budget by 2015 and while this is a noble cause, as your real estate specialists, we want you to be aware of the potential cost the government is considering imposing on you, the nation's tax payers.
Below is a list of some the most commonly used tax deductions for home owners.
1. Interest Payments - for up to $1million in mortgage debt
2. Capital Gains - keep up to $500,000 in profit when you sell your home
3. Home Office - deduct expenses for the portion of your home you use for business
4. Property Taxes - all of your property taxes can be deducted
Tax season is just around the corner so be sure to consult your tax professional to find out what deductions apply to you and your home.
Our team works tirelessly to stay up to date on all the latest market information that will affect your home buying/selling experience. Just as you entrust your finances to a tax professional, we hope that you will entrust your home to one of our real estate specialists.
We have completed dozens of transactions and millions of dollars in sales this year and would consider it a privilege to earn your business. Please give us a call and let us know how we can be of assistance.
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