An NAHB analysis and estimates by the Joint Committee on Taxation determined that homeowners were able to cut their tax bills by over $100 billion in 2014, the NAHB’s Eye on Housing blog reports. This total breaks down to $72.4 billion in tax savings coming from the mortgage interest deduction (MID), $30.2 billion coming from the real estate tax deduction (RETX), and another $30 billion coming from the capital gains tax exclusion.
The number of people claiming the MID was 34.5 million, the RETX was 33.6 million, and the number of people claiming the capital gains tax exclusion was just over 3 million.
These numbers just add to a growing list of reasons why homeownership offers benefits that renting does not. In addition to tax benefits, studies have found that owning a home plays a role in increased education for children, a lower teen-age pregnancy rate, and a higher lifetime annual income for children.