TWO THINGS ARE FOR SURE: ONE IS TAXES
I have to say that I, for one, have had a love affair going on with a time-honored Mortgage Interest Tax Deduction (MID). Up until the housing crisis, from which we are beginning to recover, interest rates weren’t all that friendly, if you remember what I mean, and we have all needed that deduction.
When the bipartisan deficit-reduction commission, appointed by President Obama, released its sixty-some-page final plan in December of 2010, it was called “The Moment of Truth.” The plan, which included suggestions to cut back on the MID, didn’t get a majority vote. However, “The Moment of Truth” spelled out the unfriendly facts for all of us to face.
Then, last summer, when the so called, “Super Committee,” was supposed to be working on ways to cut the budget, MID was on the table again, presumably to modify it in order to curb capital gains on home sales, but they were also threatening to modify it for primary residences, to cut it for second homes and HELOC loans. I was worried . . .
Recently I watched an interview between Robert Freedman of REALTOR ® Magazine and Linda Goold, National Association of Realtors ® (NAR) Director of Tax Policy.
“There is to be no deficit deal from the Super Committee that will be an impact on Realtors ® in 2012,” stated Freedman. Then when he asked Ms. Goold to comment, she said, “The news at this point is really good because we know that there will be no immediate proposal to limit the mortgage interest deduction. This is consistent with the NAR new mantra of ‘Do No Harm.’”
In November, 2011, we got a tax breather! For now, we can pay our 2011 taxes and take the deduction. However, when the committee failed to do anything, it left the House and Senate back where they started–looking for ways to cut the budget. There will be lots of competing deductions being considered, so don’t think it’s not going to be a dog fight, because it sure is.
In the meantime, we can get on with the business of listing and selling houses to people who want to live in the best of all worlds—the Emerald Coast in Destin or Fort Walton Beach and the surrounding area.
If you are thinking of buying or selling a home in Panama City Beach, Destin or anywhere in the area—then the Veach Team is prepared to help you find the Florida home of your dreams or the investment property that will put your money to work for you. Contact us today, and let us show you why “Life is a Beach” here in beautiful Destin! And don’t forget to “LIKE” us on Facebook and Twitter – we’d love to talk with you.