Tax Deductions for Housing Not Always Equal

Home owners prize their mortgage interest and property tax deductions. But some people get more benefit than others.
By: Kenneth Harney: REALTOR® Magazine Online
Home owners prize their tax deductions for mortgage interest and property taxes, but a study by the National Association of Home Builders shows that some people get more benefit than others.

Home owners in the 14th Congressional District in California, which includes Silicon Valley, took more in mortgage interest write-offs than all the residents of Vermont, Wyoming, West Virginia, Alabama, North Dakota and South Dakota combined. The average deduction in the 14th District was $35,000, compared with an average of $9,500 for home owners nationwide.

Owners in New York's 3rd District took $1.25 billion in property tax deductions, more than the $1.2 billion total reached by adding together all the property tax deductions from Hawaii, Wyoming, Arkansas, Delaware, the District of Columbia, North Dakota and South Dakota .

The bottom line: Be thankful if you’re not getting your share. It probably means you’re not being eaten alive by a huge mortgage and hefty property taxes.