How The Mortgage Interest Deduction Might Be Cut In Tax Reform

Much has been made of the fact that key Republicans working on tax reform have promised to preserve the popular mortgage interest deduction.
“We recognize … you need to maintain the mortgage interest deduction.
“Proposals limiting tax incentives for homeownership would cause home values everywhere to plunge,” the National Association of Realtors said in a talking points memo about tax reform.
And they want to reduce income tax rates, which would lower the value of the mortgage tax break for those who do itemize.
Related: How tax reform could hit charitable givingOf course, any change to the mortgage tax break will raise concerns of disrupting the housing market, with the strongest coming from the powerful real estate lobby.

Read more on: http://money.cnn.com