Home Ownership is still the Best Way to Go!

“Owning a home offers myriad benefits throughout the year. A number of tax deductions are credits are still available for home owners; these include deductions – with specific limits-for mortgage interest and captial gains on home sales, and credits for certain energy-efficient home improvements. Even with these benefits, home owners pay 80-90 percent of all U.S. federal income taxes.

“It’s been suggested that many of today’s tax incentives for home ownership primarily benefit wealthy individuals, but that’s simply not true. ” As today’s public debate continues about what home ownership means for families, communities and the nation’s economy, there’s no question that for many, owning a home is still the best way to begin building wealth.”

Ninety-one percent of home owners who claim the mortgage interest deduction earn less than $200,000 a year and the ability to deduct the interest paid on a mortgage can mean significant savings at tax time. For example, a family who bought a home in 2010 with a $200,000, 30-year, fixed-rate mortgage, assuming  an interest rate of 4.5 percent, could save nearly $3500 in federal taxes when they file this year.

“REALTORS® see the very positive impact of home ownership every day with their clients. Recent proposals to reduce or eliminate the mortgage interest deduction and remove government support of the housing finance market could have disastrous consequences for the economy, not to mention making it harder or nearly impossible for millions of families to own their own homes. We belive America must continue to invest in home ownership, for the future of our families and our nation.

For home owner tax season tips, visit www.houselogic.com.  HouseLogic is a free source of information from the National Association of REALTORS® , that helps home owners maintain and enhance the value of their homes and engage in issues that affect their local communities.