Q: In November 2010 the Federal government discussed the possibility of not allowing homeowners to deduct mortgage interest on their taxes. Can you give me an update?
A: The National Association of Realtors (NAR) is strongly opposed to any reduction in mortgage interest deductions (MID). While critics suggest that MID mostly benefit the wealthy, statistics actually show that deductions primarily benefit middle and lower income families. (Almost two-thirds of those who currently claim the MID are middle-income earners.)
Ron Phipps, President of the NAR, says that “the ability to deduct mortgage interest payments means a significant savings at tax time. A family with a $200,000 30-year fixed rate mortgage could save nearly $3,500 in federal taxes next year.” This Federal proposal from an 18-member White House commission is being called “dead on arrival.” Still, both our national and statewide real estate associations will be watching this closely. Please let me know if you have further questions regarding this or other government policies towards real estate.
If you would like to continue to receive updates on this topic or have questions, please feel free to contact me.
Aimee Klarich
Alain Pinel Realtors- Burlingame
www.AimeeKlarich.com
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