A married couple applying together can deduct up to $ 750,000 in mortgage interest on a qualifying home loan. Then there are the tax breaks people get when they sell their houses. Up to $ 250,000 (or $ 500,000 for married couples) in capital gains from the sale of primary homes can be tax-free if the taxpayer meets certain conditions.
This is where inequality comes in. Housing discrimination has deterred many black families from owning homes. Home ownership rates for blacks are still pale compared to white homeowners. In the first quarter of 2021, home ownership for non-Hispanic whites was nearly 74%, according to the Census Bureau. For blacks it was 45%.
“Between 1934 and 1962, 98% of FHA-insured loans went to white families, which is an important foundation for building wealth for future generations,” said a 2020 report by the Urban Institute.
The bias in the tax system gives many white sellers greater tax breaks, and this is due to the differences in home valuation available to black homeowners. Studies show that property values begin to decline when the presence of blacks in the neighborhood exceeds 10%, writes Brown.
As we talk about the different values and beliefs at home, Brown knows what I’m going to ask next.
There are whites who argue that the difference in esteem is not race, but crime rate, I say.