As tax reform efforts return to the fore, multiple sources are saying that the mortgage interest deduction is on the chopping block.
In short, the deduction allows for 100 percent of the interest that you pay on your home loan in a given year to be tax deductible. POLITICO reports that, despite assurances that the deduction would be protected, the Trump administration is looking to lower the current $1 million debt cap.
As currently employed, the mortgage interest deduction is seen by many, regardless of political affiliation, as primarily benefiting the real estate industry, wealthy taxpayers and homeowners in expensive areas. Trump’s promises to leave the deduction untouched were key in his gaining the support of the National Association of Realtors (NAR) last year.
“[L]imiting the mortgage interest deduction amounts to a de facto tax increase on current or future homeowners while putting homeownership further out of reach for prospective buyers,” NAR President William Brown said in a statement. “We would have strong objections over any effort to further cap or limit the deductibility of mortgage interest.”
Many involved in the negotiation process are seeking to pair a reduction of the mortgage interest deduction with a doubling of the individual standard deduction. “By some estimates, doubling the standard deduction could lower by 90 percent the use of the mortgage interest deduction by middle-class Americans, eroding much of the argument for keeping it,” the article notes.
While nothing is set in stone yet, this month will be key for Republicans to craft a plan that will be politically viable, cut taxes for businesses and individuals while minimizing the impact on the budget deficit.
This article originally published at http://dc.urbanturf.com/articles/blog/mortgage_interest_deduction_may_take_hit_during_tax_reform/12880
Most Popular... This Week • Last 30 Days • Ever
The H Street Corridor once epitomized DC's development boom, but construction activit... read »
UrbanTurf is taking a look at what we think will be the three metrics that will deter... read »
A look at the close-in cities in Maryland and Virginia with the lowest supply of home... read »
Built in 1840, the home has been home to members of Congress and presidential cabinet... read »
The gorgeous boutique condominium is ideally located on the border of Columbia Height... read »
UrbanTurf is re-running its primer on property taxes which outlines a few things that... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
After two years of market forces left this neighborhood nearly unrecognizable, signs ... read »
The Shaw pipeline is starting the year off hot.... read »
The upzoning would mandate additional Inclusionary Zoning units for developments alon... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro