Second, unlike the
mortgage interest deduction, which is effective until the end of 2025 (and likely beyond), the mortgage insurance deduction must be extended by Congress on a yearly basis.
Beyond tweaking the
mortgage interest deduction and state and local tax deduction, the GOP tax bill also doubles the size of the standard deduction to $24,000 for a married couple.
In addition, California could get hit hard by changes to the
mortgage interest deduction: (https://capitalandmain.com/how-the-gop-tax-bill-would-hurt-californians-1130) Capital and Main reports that the House-passed version of the bill creates a $500,000 cap on the amount of mortgage interest that can be deducted - a "revision would disproportionately hit residents of states with high real estate values, like California, where finding a home under $500,000 in most urban markets is very difficult."
* The
mortgage interest deduction on existing mortgages would remain the same; for residences purchased after Nov.
* Preserves the home
mortgage interest deduction for existing mortgages and maintains the home
mortgage interest deduction for new mortgages up to $500,000.
Senate Republicans are also expected to increase the threshold for the popular
mortgage interest deduction to $1 million, a substantial increase over the House, which lowered the cap to the first $500,000 of a mortgage.
The
mortgage interest deduction for newly purchased homes would be available on mortgage debt up to $500,000, down from the $1 million currently allowed.
The
mortgage interest deduction factors into some home buyers' budgets when they are deciding how much they can spend on a house.
Critics often lambast the home
mortgage interest deduction, for instance, for flowing primarily to infra-marginal home purchasers rather than those at the margin between buying and renting.
I hate the
mortgage interest deduction (MID) and I never tire of telling people why.
And later, in the debate televised on the Fox Business Network, he defended the idea of eliminating the normally sacrosanct
mortgage interest deduction (MID) by pointing out that "people had homes before" the benefit was added to the tax code.
Home owners get the
mortgage interest deduction. Parents get the child tax credit.