Another Housing Tax Tidbit

The Housing and Economic Recovery Act, which became law at the end of July, provides many changes for homeowners and would-be homeowners. One small item is that homeowners who do not itemize their deductions will be able to deduct $500 in addition to their standard deduction in acknowledgment of the state property taxes that they pay and which would be deductible if they itemized. The additional deduction is $1000 for married couples filing jointly.

Homeowners who can take advantage of this provision of the Housing Act are likely to be people who do not have mortgages – otherwise their mortgage interest payments would put them outside the category of the standard deduction. This provision would also give an additional bonus to people who purchase so late in the year that their mortgage interest payments do not reach the level where they exceed the standard deduction available. That is, in addition to the much-touted $7500 so-called tax credit, which is a major feature of the law. 

This provision applies only to 2008 tax returns (filed in 2009).

To purchase your Flagstaff home in 2008, and tax full advantage of these tax credit provisions, contact Team Heitland at RE/MAX Peak Properties!