Congress to make a decision on ending mortgage interest deduction.

For more than 80 years, the federal government has helped families become home owners and made home ownership a cornerstone of the U.S. economy by including deductions such as mortgage interest and property taxes in our tax code.

But as Congress debates ways to reduce the national deficit, those deductions are now at risk for repeal. If eliminated, the outcome would mean increased taxes for you – $3050 on average, and up to a 15% decrease in your home’s value. A devastating double whammy to any home owner!

To find out just how much a repeal of the mortgage interest deduction would cost you, take a moment to review your federal tax form Schedule A (if you are filing a tax form 1040) and look at line 10. That line shows the deduction for your home mortgage interest. What do you think your tax bill would look like if that deduction disappeared?

From a sales standpoint, the mortgage tax deduction is the biggest advantage of home ownership.  Imagine what would happen to the already tired real estate market if this was repealed?  Think of how many people would consider renting as a lifelong option.  

Then think of the domino effect reducing the number of homeowners will have on the overall economy.  Appliance, furniture, flooring and dozens of other businesses rely on new homeowners and existing home owners to update and maintain their homes.  If the majority of these homes were rental units the optional purchases would disappear.

You Can Rent Your House for 14 Days of Tax Free Rental Income

Another little known tax benefit of owning a home is that the owner can rent it out for up to 14 days during the year and pay no tax at all on the rental income. In contrast, a renter who sublets his or her rental must pay income tax on all the rental income he or she earns.

Click here for the complete list of tax benefits for home owners.

Deductions From Day One to Know

Real Estate Insight Airs Every Sunday Morning at 10:00 on Talk Radio 920 WHJJ

Phones Rang off the Hook on Real Estate Insight Over Tax Hike!

Click the link below to hear one impassioned, fed up constituent.

Mayor Scott Avedisian in studio discussing T.F. Green's airport expansion plan.

Mayor Avedisian was a great guest explaining for almost the full hour about how the expansion of the T.F. Green runway was originally proposed a decade ago, and the positive and negative effects it will have on Warwick.

One thing we all learned was the train station stop at the airport is the closest air to rail connection in the country.  Hopefully this will attract commuters to Boston and other rail points to see the value in our housing and look to move the area.

Choosing a Smaller House Doesn't Always Mean You are an Empty Nester.

I was interviewed last week by Cheryl Phillips, Real Estate Contributor to GoLocalProv.com on the growing trend in buyers looking for smaller homes, regardless of how many people are living there.

"…Downsizing isn't just for empty nesters anymore. More people, including first time homebuyers, are moving into smaller homes and learning how to live with less. 

Just how much home space do you need? Can you live with fewer possessions? And what do you do with the stuff that takes up too much space?

These questions are important in a time when making a home buying decision is based on needs rather than wants…"

Click here for the rest of the article

Providence Tax Rate to be Determined in Early Summer

Visit the Providence Tax Assessor records website: http://providence.ias-clt.com/parcel.list.php PROVIDENCE — Mayor David N. Cicilline on Friday submitted a proposed $639-million budget for the fiscal year that starts July 1. It calls for no increase in the tax levy. The budget is a 3.5-percent increase over the current budget ($618 million), but just below the city budget for fiscal year 2009 ($640.6 million). It proposes a property tax levy — the amount of revenue that the city will raise through the property tax — of about $274 million, which is the same amount that was raised from taxes this year. But how the decision to keep the tax levy steady at this year’s rate will affect property tax bills for residents and businesses is unclear. The city is in the process of completing a full property revaluation, which will determine the taxable values for city properties and is required by the state every nine years. Statistical revaluations, based on home-sale price data, are conducted every three years. City Director of Administration Richard Kerbel says that Cole-Layer-Trumble Co., the company hired to do the revaluation, will continue its work through the early summer. “When their work is complete, we will know what the [total] assessed valuation is of the city, and then we can begin the process of determining what the tax rates will be,” he said. The residential property-tax rate is currently $24.21 per $1,000 of assessed value; the commercial rate is $28.60.

Basic facts you need to know about the Homebuyer Tax Credit:

This is not just for new home buyers!

Existing home owners buying a new primary residence may also quality for a tax credit.

Qualification Period

    * The deadline for any home buyer tax credit is extended only until April 30th 2010. You must be in a purchase and sales agreement by this date.  As well, the closing must take place before July 1 2010.

For a more complete explanation, click here to go to the First Time Buyer's Page and scroll down to the Credit Details.

Rather than try to explain this myself, I thought I would leave it up to an expert:

Click the play button on the video to watch, then click on the link below to get the details.

Click here to see the new rules regarding credit cards.

North Providence is in bad financial shape.  To make up for deficits, they have approved a tax increase from $22.70 per 1000 to $25.60 per 1000.  This equals a 12.7% increase!  New tax bills are going out at the end of the month. There also may be another supplemental tax increase in January, which has not been approved yet, but more than likely will.  Total tax increase is supposed to be 17%.

Click here for current Rhode Island Municipal Tax Rates.