Homeownership
has long been the great American dream. Our tax laws have encouraged and indeed
nurtured homeownership in three important ways: when you file your annual
income tax return, you can deduct the interest you pay on your mortgage (up to
a certain limit) ,and you can also deduct the real estate tax which you pay to
your State and local governments. And when you sell your home, depending on the
facts and circumstances, you can completely exclude a sizable portion of the
profit you have made.
There
remains uncertainty as to how (or even whether) Congress will make radical
changes to our tax laws. But for now, the benefits remain. The IRS has
announced that personal returns can now be filed beginning January 31st.
