This N' That

April Sales: Greater Central Louisiana Realtors Association (GCLRA) records reflect 10 homes were sold
in the Parish in April. This compares to nine sales in April 2016, a year earlier. Year-to-date, 2017
continues to trail 2016, 36 sales to 42 sales. Last month's home sales were:

Colfax
484 Bagdad Loop/$55,000
Dry Prong
367 Race Track Rd/$180,000
402 Taylor Rd/$174,900/($6,016)
10181 Hwy 122/$87,900
1003 Hwy 167/$85,000/($3,000)
Pollock
192 Airbase Rd/$223,000
795 Crawford Lp/$200,000
284 Robertson Lp/$194,500
775 Dyson Creed/$155,000
140 Edmunds Rd/$126,000/($4,000)

The numbers in parens represent Seller concessions to the Buyer, typically a contribution to Buyer's
closing costs, and reduce the net amount received by the Seller. Three of the 10 homes sold, 192
Airbase Rd, 795 Crawford Lp, and 284 Robertson Lp, were new construction.

A 2.1 acre lot on Marcia Drive in Dry Prong sold for $21,500 in April.

Home Mortgage Interest: There is a lot of talk these days in both Washington, D.C. and Baton Rouge
about changing the tax code. I tend to dismiss any and all of these tax code discussions for two reasons.
First and foremost, as of April 15, 2016, the federal tax code consisted of 74,608 pages. I have no
information on what it is as of today. And it is my opinion that all of the language on every one of those
pages yielded a tax benefit to some industry or company, individual taxpayers included. To change the
tax code you must change that language, which probably means you are going to change a benefit for
some taxpayer. There is simply too much lobby money for that to easily happen.

Secondly, I believe discussions about changing the tax code, whether done overtly or covertly, generally
relates to raising tax revenue, not reducing it. This is not a subject politicians really want to address.

One of the changes being discussed in Washington, D.C. these days is elimination of the tax deduction
for mortgage interest, the quid pro quo being to raise the standard deduction to double their present level.
Proponents of this change are touting doubling the standard deduction will offset the loss of the mortgage
interest deduction and make doing taxes simplier.

Detailed analysis done-to-date indicates quite the opposite. The changes being discussed thus far
involve allowing a taxpayer the option of continuing to take the mortgage interest deduction (and
charitable contributions) instead of the higher standard deduction but, unless taking those historical
deductions are higher than the new standard deduction, there would be no incentive to take it. What
often is not being factored into this equation are the other itemized deductions that would be lost taking
the new standard deduction, i.e. real estate taxes, mortgage insurance premiums, state and local taxes,
as well as others such as the medical expenses deduction. You would't be losing just the mortgage
interest deduction.

Those who have conducted detailed analyses thus far are worried elimination of the interest rate
deduction could devastate homeownership in three ways:

For most people it would remove or largely reduce the tax incentive of owning a home instead of renting
one.
Discriminately raise taxes on homeowners more than on renters.
Cause a drop in the value of homes by more than 10 percent.

Ed Stewart lives in Grant Parish and is a licensed real estate agent in Louisiana. He is associated
with Keller Williams Realty Cenla Partners in Alexandria and can be reached on his cell (318-201-
3991) or office telephone (318-619-7796). Each Keller Williams Realty office is independently
owned and operated. Send your real estate questions to Ed via email at edstewart@kw.com or
chronicle1876@yahoo.com.