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 ?
The IRS determined that for 2005 the Normans' home mortgage interest deduction was limited to $42,673, the amount paid with respect to $1.1 million of indebtedness.
Recognizing that the lower rates of minority homeownership are due to a long and continuing history of discriminatory housing-related practices (e.g., redlining and reverse redlining), (308) we might choose not to eliminate the home mortgage interest deduction but instead to convert it into a refundable credit (to make it available to all taxpayers, including many lower- and middle-income taxpayers who do not itemize)" and limit its application to areas that have been redlined or reverse redlined, while building limits into the credit to provide safeguards against predatory lending practices.
The home mortgage interest deduction provides further incentive for families to eschew rental housing and smaller, less expensive owner-occupied units in favor of large, single-family houses in the suburbs.
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 $107.3 billion in 2012.
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 2009.1 Subject to various limitations, taxpayers may deduct interest on home-secured loans, such as mortgages, mortgage refinancings, and home equity loans, including those taken as lump sum amounts and home equity lines of credit.
shapiro, The Benefits of the Home Mortgage Interest Deduction, 17 TAX POL'Y & ECON.
Here is a majority-making idea: Make all Americans who pay payroll taxes eligible for every existing-income tax credit-the child tax credit, the home mortgage interest deduction, all of them.
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 false Messiah of tax policy: What elimination of the home mortgage interest deduction promises and a careful look at what it delivers, Journal of Housing Research, 9(2), 179-99.