Thursday, May 30, 2013

Where the mortgage deduction really pays

Where the mortgage deduction really pays...  an interesting article.

The mortgage interest deduction is one of the most-expensive tax breaks on the books, but its benefits are distributed unevenly across the country, according to a new, comprehensive report by the Pew Charitable Trusts.

In 2010, the year that Pew analyzed, the mortgage deduction resulted in $80 billion of forgone revenue to the federal government. Over five years, the tax break is expected to reduce revenue by about $380 billion.
This article by Jeanne Sahadi @CNNMoney shows however who really benefits from the tax break (and who benefits from other tax breaks),  while these report and maps look at the geographical distribution of the mortgage interest deduction.

Make sure to look at the interactive maps, from the Fiscal Federalism Initiative, showing how widely mortgage interest claim rates and average deductions vary, both across and within states.  They show in particular some key findings like:
- Average deduction per filer, by state,
- the Claim rate, by zip code,
- the average deduction per filer by zip code.

Local info:
Look at the average deduction per household in your local area.

Simply fascinating!...

Thanks for reading,

Silicon Valley real estate specialist
Detailed, local trends etc...

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