Mortgage interest deduction


Also found in: Acronyms.

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 ?
According to a 1989 study prepared by John Savacool for The WEFA Group of Bala Cynwyd, Pennsylvania, a loss of the mortgage interest deduction would devastate the private housing sector and a weaken the entire American economy.
The geographic concentration in areas where property values and incomes tend to be higher is not surprising given the current structure of the mortgage interest deduction.
Though the mortgage interest deduction is the primary reason that taxpayers become itemizers, critics have unfairly attacked it as a tax loophole (despite the fact that more than 33 million households claim it) and a subsidy to the rich.
Change the Mortgage Interest Deduction to a Tax Credit Targeted to Those Who Need It Most
68 percent of voters would oppose eliminating or reducing tax deductions such as the mortgage interest deduction in exchange for a lower federal income tax rate if it meant that their final tax bill would be higher.
71 percent of voters oppose proposals to eliminate the mortgage interest deduction, and 63 percent oppose efforts to reduce it.
In fact, the mortgage interest deduction is the biggest personal tax deduction available to taxpayers.
Moran offered a balanced approach to the hearing, which explored in depth the advisability, and political will, to trim existing homeownership incentives, such as the mortgage interest deduction.
But what I found troubling was that certain members of the Legislature wanted to go after the home mortgage interest deduction.
On their 2005 joint federal income tax return, the Normans claimed an $88,507 home mortgage interest deduction with respect to the Yorkshire property.
But what's arguably most important to the cap rate debate will be the fate of the home mortgage interest deduction.
The mortgage interest deduction was a principal concession--a feature of the tax system since 1913, it took on new importance as homeownership soared in the postwar era.

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