Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.
Real Estate and The Fair Tax
The fair tax and home ownership
I believe that there would be benefits to the entire economy by implementing the fair tax. Just imagine the economic power of every American keeping 100% of their paycheck! ....Plus every American getting a "prebate check" every month to off set the tax on essential items.
But what about my home interest deduction?
As the Fair Tax relates to residential real estate this is the question that always comes up. Here is the condensed answer. Under our current tax system we make our mortgage payments with after tax dollars. That is, our paycheck is taxed and then out of our take home pay we make our mortgage payment. At the end of the year we can claim a deduction for interest that we have paid. Many people understand the benefits of using pretax dollars for savings and investment. Think of your 401k. (not it's reent performance, just the concept of a 401k (-: ). One of the big benefits that is always promoted about joining your company 401k is that you are able to contribute pretax dollars toward your investment. You get an immediate return because those dollars are not ... more
Are you on The Rain? Grow Your Network!