The tax law changes significantly reduce the value of the
mortgage interest deduction (MID) and property tax deductions, which are capitalized in current house prices.
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.
But comparing ATTOM's data for 2017 originations and taxes with county-level voting results shows the impact of the
mortgage interest deduction reduction is as politically divided as the nation.
Home Builders CEO Jerry Howard said that means the plan has already eroded the value of the
mortgage interest deduction because people won't be likely to itemize deductions given the bigger standard break.
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.
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.
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.
On their 2005 joint federal income tax return, the Normans claimed an $88,507 home
mortgage interest deduction with respect to the Yorkshire property.
2) Should the
mortgage interest deduction on a second residence continue beyond 2012?
Another option is eliminating the
mortgage interest deduction on a second home, Reish says.
