Since it is election season, I thought I would discuss an item that keeps coming up as a way to reduce costs to the federal government which in reality is a question of how do we want to spend our tax dollars. This item is the tax deduction of interest paid on home mortgages. We’ll call this the HID.
I don’t claim to be an expert on this but it seems to me home ownership is a great idea for most Americans. It creates a stable atmosphere for families plus every home that is sold results in jobs being created. Good things, right?
Home ownership is not for everyone, I know this because I am a Realtor and I speak
with potential home buyers everyday. Some can’t afford it, some do not have a solid history of paying their bills, some don’t want the maintenance headaches, some want to stay flexible with their housing because of their personal life or job situation. There are probably a handful of other reasons out there as well.
Many home owners bought their homes factoring the benefits of the HID so eliminating it would make home ownership more expensive and less accessible to many in the middle class and lower income home buyers.
Plus when you tax something, you will get less of it. Less real estate transactions will mean less economic activity and less jobs. Not a good thing, right?
- Video: Common Income Tax Deductions (turbotax.intuit.com)
- Buying A Home Is 45% Cheaper than Renting (forbes.com)
- Top 10 Reasons on Why You Should Buy a Home (southmauihomes.wordpress.com)