House Republican Tax Reform Plan Will Slash Mortgage Deduction #homeownership #realestate #investment

Source:  Housing Wire

Republicans announced their new tax plan, Tax Cuts and Jobs Act & its implications on the housing market are much larger than expected.  The bill, H.R. 1, cuts the mortgage interest deduction in half.  It's previous limit was $1 million.

Many experts feared the increase in the standard deduction, which the new plan increased from $12,000 to $24,000 per household, saying it could make the mortgage interest tax deduction less appealing, however, lowering the tax deduction has brought even more outcry from the housing industry.

The National Association of Realtors, who has been one of the most vocal defenders of the mortgage interest deduction, released this statement on the new plan:

"We are currently reviewing the details of the tax proposal released today, but at first glance it appears to confirm many of our biggest concerns about the Unified Framework," NAR President William Brown said.  "Eliminating or nullifying the tax incentives for homeownership puts home values and middle class homeowners at risk, and from a cursory examination this legislation appears to do just that.  We will have additional details upon a more thorough reading of the bill."

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