There is quite a bit of talk and activity on Capitol Hill regarding the potential elimination of the mortgage interest tax deduction. Very simply, this would mean that you would no longer be able to deduct on your federal income tax return the amount of money you paid in interest on your mortgage. For many people, regardless of tax bracket, this may be their only substantial deduction other than charitable contributions.
The deduction adds up to a tremendous amount of money and we are all concerned about the national debt and finding solutions quickly. However it has been pointed out that this tax code, having been available for about a century, is hardly a new contributor to the debt issue. Is that a solid argument? Possibly not, but taking it away now essentially raises taxes on current homeowners during a time of financial and employment stress and will cause even greater damage to a deeply wounded housing industry trying to recover.
We’re interested in your thoughts on this issue.
- Was the mortgage interest deduction an incentive for you to purchase a home rather than rent?
- Would you be less likely to purchase a home should this tax deduction be eliminated?
- What would elimination of the mortgage interest tax deduction mean to you?
So many have been impacted by this economy; those who own homes now, are trying to keep or sell homes, have considered purchasing a home, and those who have worked in the housing industry but can no longer find employment or run a viable business.
Your Home Builder Associations from the local level to the national level are working hard to keep the mortgage interest tax deduction for home owners. It’s time to share your thoughts and ideas. To voice your opinion, contact your representatives!