This excerpt from Housing Watch Dec. 6th 2010
In case you missed it, The National Commission on Fiscal Responsibility and Reform, released its recommendation last week, including the proposed elimination or limitation to the mortgage interest deduction ("MID") for homeowners.
In brief, the commission proposes to limit the mortgage interest deduction to only primary residences (today, they apply to second homes as well), and cap the deduction to $500,000 worth of mortgages (today, it's $1 million).
As you can imagine, the real estate industry is in quite an uproar over any changes to the mortgage interest deduction.
Ron Phipps, the President of NAR, has issued a pretty strong statement in opposition, calling the mortgage interest deduction "vital to homeownership and the economy" and vowing to "remain vigilant in opposing any plan that modifies or excludes the deductibility of mortgage interest". The National Association of Home Builders is also, as you can imagine, opposed to messing with the MID.
What could they be thinking??? The housing industry isn't taking a big enough beating?? Maybe the Bureaucrats are just trying to justify their existences!!
This is definity something to call your congressperson about.
Ending the mortgage interest deduction is one way for the federal government to get more of the taxpayer's money and lower their deficit. Mortgage interest is reported on Form 1040, Schedule A along with other itemized deductions such as real estate property taxes, medical expenses, and charitable contributions.
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