Do we as Maryland homeowners need to be concerned about what's going on in Annapolis?
Yes, we do!
One piece of legislation will affect the most important tax benefit you receive as a homeowner.
The BRFA bill would reduce the mortgage interest deduction and the detectability of state and local property taxes for many Maryland homeowners. I don't know about you, but it is the biggest deduction I have.
For nearly 100 years, the tax code has protected mortgage interest detectability.
If this bill were to pass, Maryland would be the first state to scale back the most important tax benefit that homeowners receive.
Because housing and real estate account for over 20 percent of Maryland's gross state product, more tax burdens on real estate and homeowners will only further hurt to the Maryland economic recovery. With so many facing diminished homeownership equity and/or underwater mortgages, the proposal would do more harm than good.
One-fifth of Maryland homeowners are currently underwater, and now homeowners find the one constant reliable tax benefit to owning a home is under attack. The deduction and the detectability of state and local property taxes can account for almost 70 percent of total deductions claimed by Maryland taxpayers in 2008.
If the tax deductions are capped, as proposed by the governor's budget, many Maryland homeowners will lose some of the value of their mortgage interest.
Please URGE your legislators to OPPOSE the governor's BRFA. Check with your accountant/CPA to see how it would affect your family.
For more info on the bill, check this link for a statement from the Maryland Association of Realtors or call 800-638-6425.
Thank you for reading my blog and I'll keep updating you on the real estate market. Please do not hesitate to contact me at any time with your real estate questions and/or needs. I'm here to help.