It's Tax Day in Alabama - Do You Know Where Your Deductions Are? For Most Americans, They're in Your Home

Apr 16, 2001, 01:00 ET from Homeownership Alliance

    WASHINGTON, April 16 /PRNewswire/ -- On U.S. Income Tax Day 2001,
 America's homeowners didn't have to wait for the outcome of the latest
 Washington tax debates to reduce their tax bills by billions of dollars,
 according to the Homeownership Alliance.
     Nationwide, two out of three families own homes -- an all-time high.  And
 if past tax years are any indication, mortgage interest deductions for 2001
 will total more than a third of all deductions claimed.
     In Alabama, homeowners deducted $2.7 billion in mortgage interest on their
 tax returns in 1998, the latest year for which IRS figures are available.
 This resulted in savings per taxpayer in Alabama of $1,278.
     "Homeownership is growing by nearly two million new families every year --
 testimony to the fact that Americans are taking advantage of the tremendous
 tax benefits of owning a home," said Rick Davis, president of the
 Homeownership Alliance.
     "With all the talk in Washington about tax cuts, one thing is certain," he
 said.  "Americans who own a home are already enjoying a significant tax
 benefit.  Regardless of the eventual outcome of the tax debate, Congress can
 give taxpayers the tax break that keeps on giving.  They can continue policies
 that encourage homeownership."
     The advantages don't end with individual tax savings, Davis said.
 Homeownership has a stabilizing effect on communities and is a boost to the
 economic growth of this country, he said.
     According to the Internal Revenue Service, 31.6 million returns filed in
 1998 deducted $254.4 billion in mortgage interest.  As a result, consumers
 saved $52 billion on their 1998 taxes -- money that is pumped back into the
 economy.
     In addition, in most cases, capital gains from the sale of a home are
 exempt from taxation.
     Despite all the benefits, millions of Americans have been unable to
 purchase a home.  For example, less than half of all African Americans and
 Hispanics are homeowners.  In response, the Homeownership Alliance is
 dedicated to preserving, promoting and expanding housing opportunities for all
 Americans.
     The Alliance, based in Alexandria, VA is a coalition of 12 organizations
 and companies committed to ensuring unwavering support for the American
 housing system.  Members include the American League of Financial
 Institutions; the Council of Insurance Agents & Brokers; the Enterprise
 Foundation; Fannie Mae, Freddie Mac, the Independent Community Bankers of
 America; the Independent Insurance Agents of America; Local Initiatives
 Support Corporation; the National Association of Home Builders; the National
 Association of Real Estate Brokers, the National Bankers Association and the
 National Urban League.
     For more information on the Homeownership Alliance, visit the website at
 www.homeownershipalliance.com.
 
      CONTACT:
      Kristy Ozmun
      512-432-1953
 
 

SOURCE Homeownership Alliance
    WASHINGTON, April 16 /PRNewswire/ -- On U.S. Income Tax Day 2001,
 America's homeowners didn't have to wait for the outcome of the latest
 Washington tax debates to reduce their tax bills by billions of dollars,
 according to the Homeownership Alliance.
     Nationwide, two out of three families own homes -- an all-time high.  And
 if past tax years are any indication, mortgage interest deductions for 2001
 will total more than a third of all deductions claimed.
     In Alabama, homeowners deducted $2.7 billion in mortgage interest on their
 tax returns in 1998, the latest year for which IRS figures are available.
 This resulted in savings per taxpayer in Alabama of $1,278.
     "Homeownership is growing by nearly two million new families every year --
 testimony to the fact that Americans are taking advantage of the tremendous
 tax benefits of owning a home," said Rick Davis, president of the
 Homeownership Alliance.
     "With all the talk in Washington about tax cuts, one thing is certain," he
 said.  "Americans who own a home are already enjoying a significant tax
 benefit.  Regardless of the eventual outcome of the tax debate, Congress can
 give taxpayers the tax break that keeps on giving.  They can continue policies
 that encourage homeownership."
     The advantages don't end with individual tax savings, Davis said.
 Homeownership has a stabilizing effect on communities and is a boost to the
 economic growth of this country, he said.
     According to the Internal Revenue Service, 31.6 million returns filed in
 1998 deducted $254.4 billion in mortgage interest.  As a result, consumers
 saved $52 billion on their 1998 taxes -- money that is pumped back into the
 economy.
     In addition, in most cases, capital gains from the sale of a home are
 exempt from taxation.
     Despite all the benefits, millions of Americans have been unable to
 purchase a home.  For example, less than half of all African Americans and
 Hispanics are homeowners.  In response, the Homeownership Alliance is
 dedicated to preserving, promoting and expanding housing opportunities for all
 Americans.
     The Alliance, based in Alexandria, VA is a coalition of 12 organizations
 and companies committed to ensuring unwavering support for the American
 housing system.  Members include the American League of Financial
 Institutions; the Council of Insurance Agents & Brokers; the Enterprise
 Foundation; Fannie Mae, Freddie Mac, the Independent Community Bankers of
 America; the Independent Insurance Agents of America; Local Initiatives
 Support Corporation; the National Association of Home Builders; the National
 Association of Real Estate Brokers, the National Bankers Association and the
 National Urban League.
     For more information on the Homeownership Alliance, visit the website at
 www.homeownershipalliance.com.
 
      CONTACT:
      Kristy Ozmun
      512-432-1953
 
 SOURCE  Homeownership Alliance