Tax Deduction For Home Owners
When you purchase a home the interest you pay on the home loan can be deducted from your taxes. This is probably the single largest tax deduction for a home owner. You will need to itemize your deductions in order to take advantage of this tax deduction. Currently the National Association of Realtors is fighting for you, the home owner, to keep this deduction alive. It is possible that, given the current economic status of the U.S. economy, you could lose this deduction. It is estimated that over $100 billion could be added to the government coffers if this deduction were eliminated.
If that happens, home ownership would seem less attractive to those who do not own at this time. The entire real estate market could suffer from the loss of this deduction. Renting instead of owning your own home might seem more attractive to some.
Contact your congressional representatives and let them know that this tax deduction is very important for the recovery of the real estate market, which in turn will help the economy recover.