The big buzz this morning, at least in the Real Estate world, the proposed Mortgage Interest Rate Deduction Reduction for the so-called rich. If you watch the news, you’d think the end of the world is near. Talking heads are having a field day, spewing headlines without details.
The Wall Street Journal published this article outlining some details on what is really happening. If you’re interested, you can READ THE ARTICLE HERE.
Below is a snippet from the article.
The changes would be phased in gradually over the next few years. For the 2009 tax year, the 33% tax bracket starts with couples with taxable earnings of $208,850, when adjusted for personal exemptions and various deductible expenses. A taxpayer in the top bracket paying $1,000 of mortgage interest, for example, would see a tax break worth $350 reduced to $280.
I imagine nobody likes their taxes raised, I know I don’t. I’m not in favor of this mortgage interest deduction reduction proposal, duh. But, knowing the details, I understand that it’s not the end of the world. In reality, we’re talking about $70 less per $1,000 of Mortgage Interest Deduction. Not the end of the world money and I don’t think people will decide not to own real estate or buy nice homes as a result. Besides, it’s not over. We’ll see how it all plays out in the future.
In the mean time, we’re fortunate to live in Houston and The Woodlands, home mortgage rates are at record lows, there is an $8,000 First Time Home Buyers Tax Credit on the table, the selection of properties is excellent and sellers are motivated.
I’ll keep you posted on new developments, or you can call me if you have questions: Ken Brand 832-797-1779
Keep the faith, have fun, work hard, love all, serve all.
