If you’re planning on buying a home in the DC Metro area soon, you might have heard that Congress could change the current tax law that benefits homebuyers. Read on to find out if you could be affected.
What’s the Issue?
The tax law in question has to do with individuals receiving a tax deduction for their mortgage interest. Lawmakers are thinking of doing away with the deduction, which could have negative consequences for many DC and Bethesda-area residents who have bought – or plan to buy – a new home.
What Are the Effects of This Potential Legislation?
The main worry about this aspect of tax reform concerns the effect on the US economy and middle-class families. Those that would have the most to lose from this proposal would be DC-area families who earn under $100,000. If the proposed legislation were passed, it is believed the new tax law would discourage home buying, which would ultimately cause more damage to the overall economy.
What Has Been Done About the Issue?
The National Association of Realtors has spoken out against the proposed tax reform in front of the U.S. House Ways and Means Committee. NAR feels that the measure would harm the nation’s fragile housing market, which could create future problems within the economy.
Questions About Buying a Home in the DC Metro Area
As a Member of the Top 5 in Real Estate Network®, I have a wealth of information about DC real estate and the home buying process that may be of help to you. Feel free to contact me any time to learn more about this important issue.
Long and Foster Realtors