What if the IRS Eliminated the Mortgage Interest Tax Deduction?

By
Services for Real Estate Pros with Smaulgld LLC

Eliminate the mortgage interest tax deduction??? An unthinkable proposition! Eliminating the deduction would deter home ownership and in the current envrionment accelerate the rate of foreclosures.

The mortgage interest deduction is generally considered untouchable among law makers.

What, however, might be some positive benefits of eliminating the mortgage interest tax deduction?

In such an event, how would you react as a Realtor to protect you business?

I am neither advocating that the mortgage interest deduction be repealed, nor petitioning any government officials to do. However, if forced to think about it, I can think of at least three or four positive short term and long term benefits.

Can you think of any positive benefits of repealing the mortgage interest tax deduction?

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Ambassador
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Brian Schulman
Coldwell Banker Select Professionals, Lancaster PA - Lancaster, PA
Lancaster County PA RealEstate Expert 717-951-5552

Removing the tax benefits of homeownership would lower the prices of homes even more than they have already been ravaged.

Dec 23, 2008 09:42 AM #1
Rainmaker
124,776
Louis Cammarosano
Smaulgld LLC - Hampton, NH
Smaulgld

Brian-agree that would be a conseqence. Would you consider that in some way to be a positive impact?

 

Dec 23, 2008 09:48 AM #2
Rainmaker
69,926
Dean Akey
Saint Charles, IL

The only upside I see is that the feds would collect more tax dollars from us.  I think it would be horrible for the housing market.

Dec 23, 2008 09:49 AM #3
Ambassador
531,135
Konnie Mac McCarthy
The Majestic Group - Mc Lean, VA
Associate Broker - VA & MD

Dont' even speak of such things, the benefits of home ownership would definitely be in jeopardy..

Dec 23, 2008 09:54 AM #4
Rainmaker
124,776
Louis Cammarosano
Smaulgld LLC - Hampton, NH
Smaulgld

Dean

Yes feds gaining taxes might be considered a positive, depending on what they did with the money.

@ Brian Do you think home prices would drop in municipalities that can't afford snow removal and basis services?  

Dec 23, 2008 09:55 AM #5
Rainmaker
124,776
Louis Cammarosano
Smaulgld LLC - Hampton, NH
Smaulgld

@konnie

Thanks for stopping by- is the main reason to buy a home  the tax benefits?

Owning a fixed asset and a permanent home seems to be pretty attractive.

In some areas even with the benefits of the tax break its still less expensive to rent.

Dec 23, 2008 10:08 AM #6
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Rainmaker
124,776

Louis Cammarosano

Smaulgld
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