Don't eliminate the mortgage tax deduction

You may not know that there is a proposal to eliminate the mortgage tax deduction. This is among the efforts to eliminate all tax deductions. As for the home builders and the construction industry, the mortgage tax deduction is critical for the growth of this market segment. As I have mentioned in previous blogs, we support new home construction. It is one tradition that has meant economical growth for decades. At Cable-tite, we do not want to see this deduction eliminated, and support NAHB and many other agencies who are fighting this proposal. Please do you part to let it be known that we need to keep the home owner mortgage deduction! http://www.savemymortgageinterestdeduction.com/ The consequences would be devastating for home owners, the housing market and the nation’s economy.

Tax Credits

The National Association of Home Builders (NAHB) lobbied for an extension of the "First Time Buyer New Home Tax Credit" and won!!!! The extension is through April 30, 2010. And there's a bonus to the bill. There is a tax credit for anyone who buys another home and has lived in their current one over 5 years. The first-time tax credit is $8000, and the repeat buyer tax credit is $6500.

This tax credit extension has a two-pronged affect. First, it will encourage those young first-time buyers to buy a home, either a new one or an existing one. They might not have otherwise made this purchase. A current home owner is encouraged to move to a new home now, that might have otherwise waited. These two factors create a demand on the surplus of new homes, and will remove them from the market. There has been a "pent-up" demand for over a year, and the extension of tax credits will help release it. The tax credit will bring the supply and demand closer together, for a more even flow in 2010.

Three cheers and a tip of the hat to NAHB!!!!! Thanks!