subject: Just What You Should Read Before You Buy A House In Dc [print this page] The topic about limiting mortgage interest deduction was brought up during the electorial debates; the elephant and the donkey had different views. Regardless of this, the reduction is expected to cost roughly half a trillion stretched over a period of five fiscal years. Exactly how would this matter impact your ability to buy a house in DC?
The estimates are rather significant, based on a report from the Congressional Joint Committee on Taxation: $ 484.1 billion from fiscal year 2010 to 2014. The write-offs for local and state real estate tax on its own will amount to $ 120.9 billion. Obama and Romney prepared separate propositions to limit mortgage reduction, and presented these at the time of the presidential debates. The fate of the housing industry hinges on who will sit in the Oval Office.
Chief economist Jed Kolko of real estate watch Truila.com offered several ideas. As Romney recommended, the $ 25,000 cap on itemized deductions will generally have an effect on folks with an income range of $ 50,000 to $ 200,000 yearly . Romney is certain that losses in deductions will be compensated by lower payments based on reduced marginal rates.
For his part, President Obama supported a cutback in real estate write-offs and the like for those who received more than $ 250,000 a year, placing the cap at 28 percent. Part of his overall scheme to increase taxes for high-income taxpayers, with those on the said range maybe seeing an typical rise of $ 500 per return. Cuts in other sectors could be replaced with his proposal.
Yet, according to analysts, both proposals may only affect a small fraction of taxpaying Americans. It's still fuzzy as of this time who had the more suitable plan, let alone how each candidate's position on the matter impacted the outcome of the election. Yet, regardless of how the election had turned out, there will clearly be changes in the way you could buy a house in DC or in various other areas. But for some reason, the cost of limits for mortgage deduction needs to go down.
For more on the topic, you can check out the article at the Washington Post's website at WashingtonPost.com. Kolko also gives a in-depth analysis on capping itemized deductions at pro.truilablog.com.
by: Ofelia Bertrand
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