Mortgage interest deduction

(redirected from Home Mortgage Interest Deduction)
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Mortgage interest deduction

A federal tax deduction for interest paid on a mortgage used to acquire, construct, or improve a residence.

Mortgage Interest Deduction

In the United States, a tax deduction on the interest paid on one's mortgage. That is, one may reduce one's taxable income by the amount one pays in interest on all eligible mortgages. There are some limits to the mortgage interest deduction: for example, one may only deduct interest on the first $1,000,000 worth of mortgages, aggregated with other home debt. However, most homeowners can deduct all of their mortgage interest.
References in periodicals archive ?
They should keep the home mortgage interest deduction in place as they wrap up this year's session.
The IRS determined that for 2005 the Normans' home mortgage interest deduction was limited to $42,673, the amount paid with respect to $1.
Indeed, two years prior to the Tax Reform Act of 1986, President Ronald Reagan "explicitly instructed the Treasury Department to 'preserve that part of the American dream which the home mortgage interest deduction symbolizes.
Then she read a list of more than 20 programs, including Medicare and the home mortgage interest deduction and asked the same question again.
The congressional Joint Committee on Taxation estimates that the home mortgage interest deduction will cost the federal government $100 billion during fiscal 2011 and $107.
Of the three most expensive ones, the Home Mortgage Interest Deduction was created first, as part of the original tax code in 1913; the preferential tax treatment of employer pensions was established through a hodgepodge of administrative rulings and congressional statues between 1914 and 1926; and the tax-privileged status of employer-provided health benefits resulted from a similar conglomeration of policies during World War II and in the 1950s.
The committee heard presentations on three ideas mentioned as potential changes in the tax code to balance the budget and reduce the deficit: eliminating both the tax exemption on municipal debt and the home mortgage interest deduction, and adding a national value added tax.
The home mortgage interest deduction is the third most expensive federal income tax expenditure, with the government expected to forgo about $80 billion of revenue for the deduction in 2009.
1347, 1391 (2000) ("None of the evidence from economists or from other countries suggests that the repeal of the home mortgage interest deduction would reduce demand for owner occupied housing or home ownership rates.
Meanwhile payroll taxes have risen for working Americans who, because they pay little or no income tax, are ineligible for a range of tax breaks from the $1,O00-a-year child tax credit to the home mortgage interest deduction.
To begin with, the Panel suggested eliminating or capping several popular deductions, such as eliminating the home mortgage interest deduction and replacing it with a 15 percent limited credit.
The purpose of this paper is to propose a home mortgage interest credit (HMIC) as an alternative to the current home mortgage interest deduction (HMID).

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