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 ?
It comes to mind because, as mentioned above, in 2004 the outlay equivalent for the home mortgage interest deduction, which is just one of the tax provisions encouraging homeownership, (295) far exceeded the outlays of the Department of Housing and Urban Development.
Those who had benefited from tax expenditures were most likely to deny having used a government social program--for example, 60 percent of those who had used the Home Mortgage Interest Deduction gave that answer (see chart, page 33).
Snoe, My Home, My Debt: Remodeling the Home Mortgage Interest Deduction, 80 Ky.
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.
To reinforce these initiatives, tax incentives, such as the home mortgage interest deduction, also played an important role in encouraging homeownership.
Clearly, voters have a very strong connection to the home mortgage interest deduction and are not likely to respond well to efforts to reduce or eliminate it.
As a result, shortly after the issuance of the temporary regulations, the IRS released Publication 936, Home Mortgage Interest Deduction, to provide taxpayers with further guidance.
If Wilkinson is serious about his crusade against subsidized housing for low-income Americans, I assume he will also challenge the home mortgage interest deduction, which represents a $130 billion per year subsidy for middle- and upper-income taxpayers (with most of the benefits accrued at the higher end of the tax bracket).
The Republican chairman of the state senate's Taxes Committee is insisting on a tough new look at Minnesota's 296 special tax breaks, which range from a home mortgage interest deduction to sales taxes on clothing, charitable contributions to special credits for businesses that locate outside the Twin Cities.
According to the FTB, audits of tax returns with large home mortgage interest deductions indicate that many taxpayers and tax practitioners are not complying with the rules regarding debt limitations on the deductibility of home mortgage interest.
Arbury agrees they won't go after the home mortgage interest deduction, but says they will go after other debt, and that includes commercial mortgage interest, "the theory being that sooner or later, everything will be financed with equity.
What will happen to real estate values if the home mortgage interest deduction is eliminated?

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