Our Priorities: Federal Taxation

Mortgage rates climbed past 4% for the first time since May 2019. All these factors will continue to push mortgage rates higher in the months ahead. That means one of the main drivers of home sales over the past two years -- super low mortgage rates -- is drying up. At today's rates, the monthly mortgage for a buyer of a median-priced home will be more than $340 higher than it was a year ago.   [rsnippet id="7" name="Global Article Footer"]

Some adjustments have been made in response to such events as the pandemic-associated economic crisis. Here are the new rules that you should know about before applying for a loan.   [rsnippet id="7" name="Global Article Footer"]

The Alliance is here to help housing providers take advantage of the tax benefits available to them when filing this year. Whether you own one rental property or dozens, these tax deductions can help you keep more money in your pocket. Most rental property owner deductions can be claimed in Form 1040 and filed with your regular annual tax return.  

Pass-Through Deduction

Certain landlords who are owners of sole proprietorships, partnerships, S corporations and certain trusts may deduct up to 20% of their net rental income from their income taxes if their rental activity rises to the level of a business instead of an investment. Owners of rental property who spend at least 250 hours per year on the property or properties may also qualify. This deduction is set to be available from 2018 through 2025—take advantage of it while you can!  

Advertising Costs

Owners of rental property can deduct expenses that help you bring in new tenants and keep existing ones. This includes “For Rent” signs, newspaper ads, digital advertising and more.  

Legal and Professional Services

Owners of rental property may deduct fees paid to attorneys, accountants, advisors, and other professionals incurred from buying and maintaining the property.  

Travel and Transportation

Owners of rental property can deduct travel expenses incurred when traveling to their rental building to deal with a current tenant complaint or to locations related to maintaining the property — this includes the hardware store!   These 4 lesser-known deductions can help save you money this tax season, but don’t forget to claim deductions for utility, insurance, and repair costs when you file as well.  

Tax incentives help current owners protect their investment and make homeownership more accessible for all. Here are some key tax provisions that you should be aware of when filing this year.




Preserving and expanding tax benefits for property owners is a top priority for the American Property Owners Alliance. Click here to see how you can advocate for tax policies that support homeowners and housing providers.

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'Living Here is Getting More and More Difficult.' Homes are taxed as a function of their market value across much of the nation, but New York City's process is more complicated and problematic than most.   [rsnippet id="7" name="Global Article Footer"]

Read the original article by TurboTax on The Street.

Purchasing a home is a major life decision, but it’s one made easier by the many tax advantages available to homeowners. Items that can affect your taxes include:

• Mortgage interest
• Lender points
• Property taxes
• IRA withdrawals for first-home purchases
• Qualified home improvements
• Improvements that make a home energy-efficient

In addition to these, you can also benefit from a tax shelter on profits from the sale of your home. You also may be able to reduce their federal tax withholding in anticipation of lower tax bills related to future mortgage interest and property tax deductions. This can increase your take-home pay and make it easier to make your monthly payments...

In some states, homes are cheap, property tax rates are less than half of 1% and the average property tax payment is just a few hundred bucks per year. In the most expensive states, however, rates soar over 2%, homes are pricey and average annual property tax bills routinely creep above $5,000 and beyond.

Using data from the Tax Foundation, GOBankingRates ranked the states with the highest property taxes in America, including the percentage rate, the average dollar amount paid and the average home value. The results are listed in ascending order from least expensive to most. For context, the national average effective property tax is 1.06%, the U.S. average home value is $263,351 and the average annual property tax bill is $2,787.

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Read the original article by Janelle Cammenga on TaxFoundation.org

Today’s map takes another look at property taxes, this time focusing on states’ effective tax rates on owner-occupied housing. This is the average amount of residential property taxes actually paid, expressed as a percentage of home value.

Because property taxes are tied to housing values, it makes sense that the actual dollar amounts of property taxes tend to be higher in places with higher housing prices. This map takes housing value into account in order to give a broader perspective for property tax comparison.

States tax real property in a variety of ways: some impose a rate or a millage—the amount of tax per thousand dollars of value—on the fair market value of the property, while others impose it on some percentage (the assessment ratio) of the market value. While values are often determined by comparable sales, jurisdictions also vary in how they calculate assessed values...