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Mortgage interest deduction may be on Trump’s chopping block

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Mortgage Professional America | 02 Dec 2016, 12:16 PM Agree 0
Modifying the popular deduction wouldn’t actually affect a majority of homeowners — but industry leaders are adamant that the MID is untouchable
  • Jake | | 02 Dec 2016, 01:21 PM Agree 0
    Why reprint some nonsense from the leftist CNBC? Their story is not even a story. Mortgage interest is capped on $500k or $1M mortgage mortgages already as reported. Trump says total interest deducted cannot be more than $100,000 per year. Who is paying $100,000 per year in mortgage interest on a $1M mortgage? Better yet a $500k mortgage? No one. It's impossible. This change would not effect a single person yet the leftist CNBC wants to slant some story, stir the pot and then MPA and others reprint. You can do better.
  • Carolyn | | 02 Dec 2016, 01:38 PM Agree 0
    Thank you Jake for your comment. Ryan Smith who wrote the article should do some journalistic due diligence investigation before passing on questionable information. Not responsible journalism or is that an oxymoron for CNBC?
  • GARY H. | | 02 Dec 2016, 01:43 PM Agree 0
    Truly hope this is the case. Got into real estate when depreciation deduction on passive losses limited to 25k. This caused a "dumping of real estate because many of investors including myself had our deductions based on losses far exceeding this. AFter this the IRS went crazy with tax laws and cuts.
  • Steve Hanleigh | | 02 Dec 2016, 01:55 PM Agree 0
    I don't think there is enough clarity in this report, or reactions. Is the talk only about MID on principal residences, or is about MID in total: 2nd homes, residential income property, retail developments, industrial buildings,......?

    If it is, then the economy will be doomed. Without the benefit of leverage, the whole real estate market will tank. Of all people, Trump knows that. If the talk is only about principal residences, then you don't have as significant a reaction, yet.

    At any event, any toying with MID on principal residences will sure help the affordability crisis in high cost areas! Goodbye home ownership, we can just plan on being a nation of renters...unless a builder can't write off the interest cost of his construction mortgage, and then sell it to someone who needs a mortgage to pay for it... It just won't get built, and we can become a nation of campers.
  • Sensiblycentered | | 02 Dec 2016, 02:08 PM Agree 0
    Oh, for goodness sake. Stop all the sniping about left wing perspective propaganda unless you're willing to acknowledge right wing propaganda like Fox. Massively fewer people watch MSNBC than Fox anyhow.

    Better yet, get info from sound sources, not from part of the political machines. Reuters, AP, Christian Science Monitor, The Economist, etc.

  • BSEATTLE | | 02 Dec 2016, 03:45 PM Agree 0
    My understanding is the changes being discussed for the MID was based on total household income - so higher wage earners (by their definition) would lose this deduction and the middle class would keep it regardless of mortgage size. Clarification is definitely needed as is the need for reconsideration for people living in higher cost areas where housing costs more to negate higher income.
  • Frankie | | 02 Dec 2016, 04:59 PM Agree 0
    Jake, what you're talking about are two completely separate proposals. There's a proposal to cap itemized deductions at 100k dollars. They are also, according to Mnuchin, going to reduce the cap on the mortgage interest deduction. This has nothing to do with the 100k total limit. What do they want to reduce it to? Who knows? As you said, it's currently 1m. Maybe they'll dump it to 500k and the only middle class it will hurt are Californians and other high cost of living areas. Or maybe they'll dump it to 200k and screw a massive chunk of the middle class. The vast number of people, yourself included, that are saying this can't matter to the middle class are wrong and are not understanding what's being said.
  • KAS | | 02 Dec 2016, 07:02 PM Agree 0
    I hear the comments. IRS and Government in general, the idea is to cut a little, convince us that it is no big deal,
    and then after everyone settles into the feeling of 'no big deal'....turn around later and throw the whole Mortgage interest
    deduction out the window. Give an inch and they will eventually take a mile!!!

    Beware, hold fast to the way it is---after all if it really isn't going to affect anyone....do not miss with!

    Now, I would like to expound on Olick percentages!!! AND his statement that “Only about 40 million (or 22.5%) of the 173 million households in the U.S. benefit from the mortgage interest deduction, according to the Tax Policy Center,”....well ONLY about 40 MILLION is rather significant --- and what is the income bracket of so these 'only' 40,000,000,000 ..... " !

    Realtors, mortgage brokers and homeowners- look at it this way:
    U.S. of America population as of Nov 30, 2016 325,110,000
    Number of registered voters that voted this 2016 presidential election (estimated) 231,556,622
    Number of young voters that voted this 2016 presidential election ( estimated) 24,000,000
    Number of Households with mortgages Per Olick 173,000.000
    Number of households that benefits from the mortgage deduction Per Olick 73,000,000
    Number of young people that voted this 2016 presidential election (estimate) 24,000,000
    Olick says that only 22.5% of the households are benefited by interest deduction 40,000,000

    All I am getting at is: Supposedly the government believes home be made Affordable
    for all American. A Man's castle is his home. And obviously 73,000,000 is not everyone. And the mortgage deductions
    should be available for everyone. And 24,000,000 young voters (the Millennium generation) are just now getting into the market
    and in few years from now our youths born after 2001 (Generation Z/Boomlets) will be entering the market which will out number the Millennium generation. AND the homes are not getting smaller, but larger and more expensive and property taxes on the rise accordingly.

    For a prospective purchaser and repeat purchaser, the mortgage deductions (along with other incentives such as tax credits...) are a big deal in weighing the pros and cons for home purchase.

    Perhaps "only 40,000,000" is IRS mentality that these households are no BIG DEAL.... ! Why because makes the idea more plausible to us the dump public? Rather why not stick to eliminating some of corporate deductions, and help all the American people to be homeowners. Frankly, the mortgage deductions is a BIG deal and I do not think it should be messed with at this point regardless if no one writes off 100,000 or 250,000.... What about 2nd home mortgage deductions....

    Support National Associate of Realtors and Mortgage Professionals of American - do not be laxsy-daisy - get out and resist!.

    Do we really want to take the money spent on home purchases out of circulation/ out the economy? Really!
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