What's Hot: Douglas Development Files PUD For Large Warehouse At New City Site Along New York Avenue
The (Now) Unpopular Mortgage Interest Deduction
✉️ Want to forward this article? Click here.
After the federal government enacted a large-scale tax reform package late last year, it became clear that between the lowered ceiling for eligible mortgage interest deductions and the doubled standard deduction, fewer homeowners would be compelled — or allowed — to deduct their mortgage interest. Now, we have a better idea to the extent of that impact.
As the Wall Street Journal reports, while the mortgage interest deduction saved taxpayers $60 billion in 2017, the Joint Committee on Taxation estimates that it will only save taxpayers $25 billion this year.
story continues below
loading...story continues above
Similarly, while 46.5 million households itemized their deductions in 2017, only 18 million are expected to do so this year. This will mean that 57 percent fewer homeowners will deduct mortgage interest, or 13.8 million taxpayers — a cohort that will be skewed heavily toward high-earners.
Last year, 36.5 percent of the tax break went to households earning between $100,000 and $200,000; this year, that percent will be closer to 28.9. Conversely, 12.4 percent of the tax break went to households earning over $500,000 last year, a share that will nearly double to 23.9 percent.
The value of the deduction is also suppressed by the lowered ceiling on mortgages, as homeowners can now only deduct interest on the loan up to $750,000 rather than $1 million.
See other articles related to: mortgage interest deduction, mortgages, taxes
This article originally published at https://dc.urbanturf.com/articles/blog/the-now-unpopular-mortgage-interest-deduction/13886.
Most Popular... This Week • Last 30 Days • Ever
When you buy a home in the District, you will have to pay property taxes along with y... read »
The largest condominium building in downtown DC in recent memory is currently under c... read »
The plan to convert a Dupont Circle office building into a residential development ap... read »
The Rivière includes just 20 homes located on the eastern banks of the Anacostia Riv... read »
Why Tyra Banks is serving ice cream in DC; a bike shop/record store opens in Adams Mo... 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. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro