Homeowners who are fed up with rising property taxes could get a big break under a proposal in Congress that would make it easier for them to deduct real estate taxes on their federal income tax return.

Federal law now allows property taxes to be deducted–but only by people who itemize deductions on their federal returns.

Many taxpayers don’t itemize their deductions but instead take take the standard deductions when filling out their annual return. (According to the National Association of Realtors, more than 40 percent of homeowners do not itemize.)

Legislation being pushed by a bipartisan group of lawmakers would allow homeowners to claim a property tax deduction even if they don’t itemize. The property tax deduction would be on top of any standard deduction they already receive.

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This entry was posted on Sunday, January 27th, 2008 at 3:07 am and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.