Thursday, May 16, 2013

More on the Mortgage Deduction

Topic Summary: In the last edition we alerted you that Congress is laying the foundation for comprehensive tax reform. (article is below) Sure to be part of those conversations is the Mortgage Interest Deduction (MID) that millions of homeowners benefit from. In this ongoing series we aim to keep you up to speed on the talks in Washington. We will give you an opportunity to get your views across to your elected officials and generally will be a valuable source of information as tax reform takes over the activity in Washington.

But I Don't Have A Mortgage. Why Should I Care? 

If certain provisions in any new tax reform are counter-productive to a robust housing market, all homeowners will lose out. If you have a paid off mortgage are you still deducting state and local property taxes? They are talking about these too. For many homeowners, property taxes are their largest tax deduction, one that continues even after a mortgage is paid off. Just remember if less people can afford to buy a home, selling yours will be more difficult.

What To Believe: If you benefit or not from the MID, you should be aware of some of the myths that are floating around that distort the conversation on the merits of the tax provision. Our friends at Houselogic have added their research on 6 MYTHS ON THE MORTAGE INTERST DEDUCTION

By The Numbers. State By State Usage Of The MID
Recently the Pew Organization added some of their findings to the conversation on Tax Reform. They wanted to find out if the benefits of the MID were evenly distributed throughout the country. In other words, where do you stand in relation to other states? 

The percentage of tax filers deducting mortgage interest in 2010 ranged from a high of nearly 37 percent in Maryland to a low of 15 percent in West Virginia and North Dakota.   The Pew Organization's very comprehensive report  can be downloaded HERE
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