Defending the Mortgage Interest Deduction
Latest News and Information
August, 2009: The Congressional Budget Office (CBO) releases report for FY 2010 to cut spending and bolster revenues, which includes proposals that would have an impact on housing-related tax provisions.
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February 29, 2009: President Obama proposes a budget that would modify the mortgage interest deduction and could seriously impede the recovery of the real estate markets.
Read more about NAR's opposition to this provision>
Read the March 2009 edition of the Eye on the Hill>
Issue Summary: Mortgage Interest Deduction
NAR opposes any changes to current law. Individuals are permitted to deduct mortgage interest paid on mortgage debt of up to $1 million. The deduction is available for interest on mortgages for a principal residence and one additional residence. The $1 million limitation represents the combined allowable debt on two residences. Mortgage interest on up to $100,000 of debt on home equity loans or lines of credit also qualifies for the deduction.
Read the full issue summary document>
Issue Summary: Tax Reform
NAR embraces no single tax reform model such as a flat tax or a retail sales tax. Rather, NAR acknowledges the complexity of the tax system and seeks to assure that tax reforms support the goals of homeownership and freedom to buy, maintain and sell real estate.
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Advocacy History
On October 14, 2005, NAR 2005 president Al Mansell issued a letter to the President Bush's Advisory Panel on Tax Reform. The letter outlined NAR's observations and concerns in response to the panel's discussion of the mortgage interest deduction and other benefits associated with owner-occupied housing.
Read NAR's full letter >
Recommendations of President Bush's Advisory Panel on Tax Reform>
