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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
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: ( 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.

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