The Daily Money: Tax Day is here; homeownership as a vehicle to build wealth and more
Tax Day is here! Technically, you have until 11:59 p.m. to file your taxes.
That means you have time to read today’s top headlines brought to you by yours truly, Swapna Venugopal Ramaswamy.
For the eleventh-hour tax filers, here’s a tip: If you itemize your deductions, you may be able to deduct expenses you paid that year for medical and dental care for yourself, your spouse, and your dependents. However, you can deduct only the amount of your total medical expenses that exceed 7.5% of your adjusted gross income.
For more tips, read "Tax season 2023: Save money with these often overlooked federal tax deductions."
Homeownership as a vehicle to build wealth
Over the last decade, the median-priced home in the U.S. gained $190,000 in value, making the typical homeowner 40 times wealthier than if they had remained a renter, according to a new report.
Low-income homeowners (those earning no greater than 80% of the area median income) built $98,900 in wealth as their homes while middle-income (those making more than 80% but less than 200% of median area income) and upper income (those earning more than 200% of median area income) homeowners accumulated $122,100 and $150,800 in wealth respectively, according to a report released Tuesday by the National Association of Realtors.
“Over a long time of period, home ownership is a solid path towards building wealth,” says Lawrence Yun, chief economist for National Association of Realtors told Paste BN. “It works in two ways: first you have the advantage of home price appreciation and second, it forces homeowners to save for monthly mortgage payments which renters don’t have.”
To dive into where homeowners built the most wealth, there’s a handy chart with the story.
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About The Daily Money
Each weekday, The Daily Money delivers the best consumer news from Paste BN. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.