Wishing everyone a very Healthy, Happy and Prosperous New Year!
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Currently, the co-chairs of the bipartisan deficit committee have initiated proposals for the 2010 budget. The current budget includes the elimination or reduction of the home mortgage interest deduction. Presently, the goal of the report pertains to improving the countries current fiscal situation over the medium term. Furthermore, it aims to achieve long-term fiscal sustainability.
The original recommendations entailed savings of $208 billion over the next decade. On the other hand, recent revisions made by Democrat Erksine Bowles and former Sen. Alan Simpson propose a zero option plan, which would eliminate tax credits for homeowners and businesses. In their revised draft, they projected cutting the deficit by $3.9 trillion by 2020. In addition, they proposed that by the year 2035 this would reduce the national percentage of Gross Domestic Product (GDP) debt by 40%.
The current proposal indicates how the mortgage interest deduction is a nonessential. It further stipulates how other countries as Australia and Canada do not have it, yet people still buy homes. Furthermore, Simpson and Bowles assert that the mortgage interest deduction is part of tax expenditures considered unfair in draining the treasury. Therefore, they propose the elimination of all tax credits.
In the event that people do not want to accept their recommendations, they proffer a reduction. The aforementioned would include placing a limitation on the current mortgage interest deduction so that it would not exceed more than $500,000. Furthermore, homeowners could no longer apply it to a second home purchase.
Mortgage Interest Deductions Defined
Under Title 26, of U.S.C. § 16 3(c) of the United States Internal Revenue Service (IRS), homeowners are entitled to the mortgage interest deduction as long as they adhere to specific guidelines. These guidelines specify that a homeowner must itemize deductions. Additionally, the interest deducted may not surpass one million dollars.
Furthermore, the deductions may only involve the acquisition, construction, or comprehensive home improvement. On the other hand, despite a homeowners intended purpose or use, they may use up to $100,000 of their home equity.
Reasons Congress Should Continue Mortgage Interest Deduction
As illustrated above, the benefits of mortgage interest deductions are many. Ultimately, it provides a way for homeowners to reduce their taxable income in accordance with the interest paid on their home loan. Therefore, it serves as a huge benefit for those who own their own home.
Presently, more than ¾ of all homeowners utilize this deduction throughout their home ownership. Generally, most of the people who need it the most are the middle class. Ultimately, the reduction or elimination of the mortgage interest deduction would eliminate one of the largest buying incentives within the national housing policy.
In the end, the National Association of Realtors (NAR) asserts that removing such a deduction will affect the overall stability of the current economy and housing market. In addition, the tax policy director, Ryan Ellis with the Americans for Tax Reforms contends that any changes with the current mortgage interest deduction will lead to tax increases amounting to over one trillion dollars in 10 years.
Right between Killington and Okemo ski resorts. Located just off VAST (Snowmobile Trails) there are possibilities for direct access to the trails the building features a heated garage which would be a perfect place to store and work on your sleds. It is also equidistant to echo lake and Woodard reservoir and just down the road from the Coolidge historical sites, Long Trail brewery, and the village of Woodstock this is the perfect location for year round vacation or daily life! There are 4 bedrooms, 4 large bathrooms, and an updated kitchen. Each room has individually controlled thermostat, and a propane fireplace. The building is very energy efficient! Owner financing available – this is not a drive-by – Priced to sell! $229,900.00
By: Pat Curry
Published: November 18, 2009
Before you plug in and light up for the holidays, run your decorations through this quick safety check.
Inspect light strings. Discard any that are damaged. Frayed or cracked electrical cords or broken sockets are leading fire hazards.
Follow the manufacturer’s instructions for connecting multiple strings. The general limit is three strings. Light strings with stacked plugs can usually accommodate greater lengths than end-to-end connections.
Replace burned-out bulbs promptly. Empty sockets can cause the entire string to overheat.
Make sure outdoor lighting is UL-rated for exterior use. Exterior lights, unlike those used inside the house, need to be weather-resistant. The same goes for any extension cords used outdoors.
Don’t use outdoor lights indoors. They’re too hot for interior use. For the coolest bulbs and greatest energy efficiency, try LED lights, which come in a wide range of styles and colors.
Don’t attach light strings with nails or staples. They can cut through the wire insulation and create a fire hazard. Only use UL-approved hangers.
Take exterior lights down within 90 days. The longer they stay up, the more likely they are to suffer damage from weather and critters chewing on them.
Store lights safely. Tangled lights can lead to damaged cords and broken sockets. After the holidays, coil each string loosely around a stiff piece of cardboard, wrap it in paper or fabric to protect the bulbs, and store in a sturdy container until next year.
Pat Curry is a former senior editor at BUILDER, the official magazine of the National Association of Home Builders, and a frequent contributor to real estate and home-building publications.