Tag Archive for ‘taxes’

Tax Reform Toolkit: Understanding Changes to the Net Operating Loss Deduction

Before the Tax Cuts and Jobs Act (TCJA) went into effect, a business’s net operating losses (NOLs) could generally be carried back two years and carried forward 20 years to offset taxable income. Tax reform, however, repealed the two-year carryback allowance and other special carryback provisions for losses arising in tax years beginning after Dec. 31, 2017. The TCJA also… Read More ›

HELOC Win Retains $760 Million in Remodeling Incentives

Ever since the inception of the U.S. income tax in 1913, home owners have been able to deduct interest paid on home equity loans (HELOCs). The Omnibus Budget Reconciliation Act of 1987 limited the mortgage interest and HELOC deductions to interest paid on $1,000,000 and $100,000 of debt, respectively. Then came the Tax Cuts and Jobs Act of 2017 (TCJA)…. Read More ›

Property Taxes by State – 2016

The 2016 American Community Survey data shows that New Jersey still leads the nation with the highest average annual real estate tax (RET) bill of $8,374—$7,707 more than RETs paid by Alabama’s homeowners. The difference between the highest-taxed state (New Jersey) and lowest (Alabama) grew by $481 in 2016. The overall distribution remained roughly unchanged since 2015, as the composition… Read More ›

Who Claims the Home Office Deduction?

With tax preparation season well underway, it is a good time to examine the use of the home office deduction. Often cited as a “red flag” for tax audits, the home office deduction is a legitimate business deduction particularly important for certain professionals and small business owners. Moreover – from the housing economics perspective – IRS data concerning the deduction,… Read More ›

Property Tax Revenue Grows Over Four Percent

NAHB analysis of the Census Bureau’s quarterly tax data shows that $524 billion in taxes were paid by property owners over the four quarters ending in Q1 2016. This represents a $22 billion—or 4.4%—increase over the previous trailing four quarters, the largest percentage increase since 2009. Property taxes accounted for 39.3% of state and local tax receipts, the largest share… Read More ›

What Building 1,000 Homes Means to the U.S. Economy

According to NAHB’s National Impact of Home Building model, building 1,000 average single-family homes generates 2,975 jobs and $111.0 million in taxes and fees for all levels of government.  Similarly, building 1,000 average rental apartments generates 1,133 jobs and $42.4 million in taxes. The jobs are measured in full-time equivalents (enough work to keep one worker employed full-time for a… Read More ›

$100,000 in Remodeling=Nine Tenths of a Full-Time Job

In addition to benefitting those who live in remodeled homes, remodeling also has the ability to stimulate the U.S. economy. The latest estimates released by NAHB show that spending $100,000 on remodeling generates about $48,000 in wages and salaries in the U.S., which translates to .89 of a job measured in full-time equivalents (enough work to keep one worker employed for a year). Much… Read More ›

Jobs Created in the U.S. When a Home is Built

In an article published the first day of this month, NAHB released new estimates of the impact that building single-family and multifamily homes has on the U.S. economy. The new estimates show that building an average single-family home generates 2.97 jobs, measured in full-time equivalents (enough work to keep one worker employed for a year). A substantial share of this is… Read More ›