[A] report issued by the Pew Charitable Trusts – an independent nonprofit organization and the sole beneficiary of several trusts established by heirs of Sun Oil Company founder Joseph N. Pew – determined that the percentage of tax filers deducting mortgage interest ranged from nearly 37 percent in Maryland to only 15 percent in West Virginia and North Dakota. The disparity between some of the metropolitan areas within states was even greater. For instance, in Texas the deduction rate for the Austin area was approximately four times the going rate for the Odessa area. The size of the deduction also varies significantly across the individual states. In 2010, the average deduction ranged from $4,580 per filer in Maryland to $1,192 per filer in North Dakota. The study pinpointed the national average at $2,713. [AWEB, Pew]
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You Know It’s Officially Tax Season When Someone Threatens an IRS Office with a Bomb
Amiright? Apparently, this guy in Sarasota, Florida was just messing with everyone but, of course, that still doesn’t go over very well with the local authorities.
“About 11:45 a.m. a 59-year-old man walked into the center with a briefcase and a box,” said Sarasota County Sheriff’s Office Capt. Paul Richard. “He placed it on what’s been described to me as a counter top and told personnel there that he had a bomb,” Richard said. IRS security personnel at the office managed to subdue the man and then hand him over to deputies. The office houses 60 employees, who were evacuated during the episode. The sheriff’s office bomb squad later confirmed there was no explosive or destructive device in either the box or the briefcase.
Homebuyer Credit to Continue Helping People Get into Crazy Debt?
Maybe! The opportunity to take advantage of the current credit expires on November 30th. Luckily, the brain trust known as the U.S. Senate is all over this and is going to get a new plan in place come hell or high water.
The best part is that under the Senate’s latest proposal, the credit will now be “extended beyond first time buyers,” as reported by Bloomberg.
So, if you’ve lived in your current shack for five years and you’re looking to upgrade, you’ll be eligible for a $6,500 credit. First time homebuyers will still receive an $8,000 The new extension of the credit would be available for home purchases under contract by April 30, 2010 and close by the end of June.
But that’s not all! Under the new plan, the credit would be available for individuals earning $125k up from $75k and couples earning $250k up from $150k. Presumably more McMansions will get purchased this way.
More good news: this thing has bipartisan support:
Senate Minority Leader Mitch McConnell, a Kentucky Republican, agreed that most lawmakers support the unemployment and homebuyer measures. “We’re not that far away from an agreement,” he said earlier today.
Who knew it was possible? The problem is, not everyone thinks this is a good idea, including Joe Kristan over at Tax Update Blog:
It’s nice to know that a majority of the millionaires in the Senate think it’s wise to spend $40,000 to $80,000 of our money for each new home sale caused by the credit, even though the credit is rife with fraud.
The credit extension would be tied to an extension of unemployment benefits; the provisions may still be changed, and it has to be reconciled with a House bill that has no homebuyer credit provision.
If they extend it this time, does anybody believe they won’t try to extend it again every time it is set to expire?
And Tax Girl:
Does that cover everybody? Does everyone get a tax credit now? Cause we wouldn’t want to be handing out that free money and leave someone out.
My concern is that if people need the credit to get into a first home or move up to a larger one, are they getting in over their heads in debt? And isn’t that what got us into the economic trouble we’re in now?
Call us party poopers but we’ll go with accountants over the U.S. Senate any day.
Homebuyer Credit Extension a Done Deal? NOL Carrybacks Enhanced? [Tax Update Blog]
First Time Homebuyer’s Credit Likely Expanded [Tax Girl]
Reconfigured home buyer tax credit [Don’t Mess With Taxes]
Also see: Lawmakers Find A Way To Outfox 4-Year Old Tax Cheats [DB]
Americans for Tax Reform’s Grover Norquist Finally Exposed as a Hipster
As if the beard and the "I hated taxes before it was cool" mantra wasn't […]