Talking about the future of the Mortgage Interest Deduction, rumors about a new tax on real estate and home prices in Upstate South Carolina…
Is The Mortgage Interest Deduction Doomed?
I watched the Presidential debate last night for as long as I could stomach it. Really not sure why I watched because I know that before the election they will say anything to win. It is after they go into office we find out the truth…
And one major issue that I am curious about is the Mortgage Interest Deduction. Both candidates have dropped hints about changing the MID but who knows what will happen. After all, this is a popular tax break for many Americans and no matter what, the POTUS has to get Congress to agree to any changes.
One interesting note is that a recent survey by the National Low Income Housing Coalition says that while most taxpayers like the Mortgage Interest Deduction, the majority would like to see it changed to benefit low and middle income families more. 63% would like to limit the MID to mortgages under $500,000.
Interesting but where do the candidates stand? According to this article:
- Obama has proposed limiting the MID for households with incomes under $250,000 per year
- Romney has mentioned eliminating the deduction for 2nd homes for high income families
Both suggestions are similar but talk is cheap and only time will tell if the MID survives or is changed to something entirely different. What do you think?
3.8% Tax on Real Estate
The internet rumor mill is in high gear with the upcoming election so I have to once again talk about the rumors regarding a 3.8% tax on real estate. Here are the facts according to NAR:
For individuals earning $200,000 a year or more and married couples earning $250,000 a year or more, certain investment income above these income levels might be subject to the 3.8 percent tax on a portion of that income. Investment income includes capital gains, dividends, interest payments, and, for those who own rental property, net rental income.
That is just the basics. Obviously, it does not apply to everyone. Since I am not a CPA, financial adviser or tax professional, I would suggest talking to someone with more expertise in taxes to see how this may affect you. But it appears that the income limits will mean that this will NOT affect most Americans.
The Bank I Love to Hate
Maybe someday I will be shocked to go a week without reading something negative about Bank of America. I seriously doubt that will ever happen but check out the latest news regarding BofA:
I leave it up to you to decide if this is a bank you want to do business with…
FNC Says Home Prices Up 1.5%
FNC recently released their latest report on US home prices. They said:
- Home prices reached a 20-month high
- This is the 6th consecutive month of price increases
- Home prices in August 2012 are 1.5% higher than August 2011
Sounds great but that is for the entire US. Since real estate is always local, lets look at the real estate market in Upstate South Carolina: