New tax break for homebuyers this year

According to a press release from the US government, in late 2006 congress passed a law giving home buyers who are closing loans in 2007, the ability to deduct the full cost of their mortgage insurance premiums on their federal tax return in 2008.  There is one stipulation to the new law, the tax break is available to only those households who have annual combined incomes of $100,000 or less.

The law is designed to help low to middle income Americans purchase a home. The mortgage insurance deduction will serve as an option when taking an additional loan to cover the 20% down-payment.  Statistically the new law should help nearly a million Americans when filing their taxes in 2008 and will increase their buying power.

The law is still up to IRS interpretation, so you should still consult a tax professional when filing your taxes. For information about Las Vegas real estate, visit me online or contact me directly at 702-493-8033.