MID: Mortgage Interest Deduction. The mortgage interest deduction allows taxpayers who own their homes to reduce their taxable income by the amount of interest paid on the loan which is secured by their principal residence (or, sometimes, a second home) – something we have been able to utilize for a long time. According to the IRS, the maximum mortgage amount you can claim interest on is $1,000,000 on first or second homes if the loan was taken after Oct 13, 1987.
Well, now the second home interest deduction is in danger of being eliminated by the federal government. Many of us sell second homes here in Florida. Will this impact your business? Most definitely. The bigger problem lies in the mortgage interest deduction on primary residences…that could be the next to go.
“Any changes to the mortgage interest deduction now or in the future could threaten recent progress toward stabilizing the housing market, critically erode home prices and values, destroy middle-class wealth accumulation and hurt economic growth.” That was the message delivered by National Association of REALTORS® NAR Chief Economist Lawrence Yun.
“As the leading advocate for housing and homeownership, NAR firmly believes that the mortgage interest deduction is vital to the stability of the American housing market and economy,” said Yun. “The MID facilitates home ownership by reducing the carrying costs of owning a home, and it makes a real difference to hard-working middle-class families.”
“One thing that is indisputable is that eliminating the MID will lower the homeownership rate in the U.S.,” he said. “While we must ensure that the conditions that led to the artificially inflated home ownership rate of the bubble years do not resurface, we also need to create the conditions for sustainable home ownership, which has been shown to provide myriad social benefits for families and communities.”
Many of us don’t get excited when it comes to our government, we seem resigned to the inevitable! We feel like our opinion and voices don’t count. We don’t want to get involved. Well, we all had better get involved, or our business will be no longer. When there is a NAR Call to Action, as Nike says: Just Do It! We can’t afford to wait for someone else to do it. This is our business, our industry, if we don’t do something about it – who will? Nothing ever happened in this country by the citizens being apathetic. Our country was founded on grit, determination and the will to succeed. So we – y0u and me, as REALTORS®, need to stand up and be counted, to get involved and make our thoughts known to our legislators.
Now is the time!
Take a couple of minutes to stay up-to-date on the issues effecting our business: REALTOR® Action Center
Until next Monday…