After the listing price, what other costs do you consider when buying a home? Many think about the costs of commuting, schools, and property taxes. Buyers also consider the tax benefits of home ownership. We all appreciate those little boxes that you can check on your tax return that give us a significant tax savings. How would you feel if those tax benefits disappeared?
Tax benefits associated with real estate are currently under review in our Senate. LW Reedy and members of the National Association of Realtors are voicing their opinions about potential tax reform, making sure that the Senate understands the importance of retaining tax provisions that are vital to real estate.
As the Senate Finance Committee begins its overhaul of the federal tax code, they are basically creating a blank slate, removing all deductions, credits and exemptions. The Senate has been asked to give the committee input on which tax provisions should be maintained, modified or improved. LW Reedy and members of the National Association of Realtors are asking the Senate to maintain or improve many tax provisions, including some of the following, which are considered vitally important to home owners:
- mortgage interest deduction.
- exclusion of capital gains on the sale of a principal residence.
- deduction for property taxes paid.
For more explanation on potential tax reforms, view the National Association of Realtors video clip.
In response to LW Reedy agent emails to the senate, Senator Dick Durbin replied, “The mortgage interest deduction has given countless homeowners the ability to deduct from their taxes the interest they pay on the mortgage for their primary or secondary residence. Three-quarters of homeowners with a mortgage take advantage of this important tax benefit. This and other tax provisions, such as the property tax deduction and the exclusion from capital gains from the sale of a principal residence, seek to encourage homeownership and help our housing market recover.”
Realtors are speaking up, making sure that Senator Dick Durbin and other Senate members fully understand the impact of real estate tax reform on home owners, the real estate market, and the economy. To make your voice heard, send an e-mail to firstname.lastname@example.org by July 26. Let the Senate Finance Committee know how important these tax benefits are to you as a home owner.