Approximately sixty percent of Americans cannot afford an emergency expense of $500. Americans who earn more than $75,000 per year – about a third more than the typical U.S. household makes slightly more than the median household income in New Jersey – said that, despite more savings on hand, almost half wouldn’t be able to cover a $500 expense.
For many, a broken window or water heater are too great an expense to afford, and they must make cut backs in their daily life or plunge further into credit-card debt. Deductions for home repairs will go a long way to assist the middle-class with taking care of an unexpected expense that can put mental, emotional, and physical stress on trying to make ends meet. Moreover, the bill clearly defines what the deductions are to ensure the resident’s property taxes aren’t raised on the assumption that the repair was an improvement.