I think in some parts of Orange County the drop will be much bigger. And if the mortgage tax deduction is repealed then you get a straight apples to apples comparison on mortgages. So, if your mortgage is $5,000 but renting is $3,000, which one makes sense. I think you'll see a big drop.
Mortgage Interest Deduction Background
- The MID has been part of the federal tax code since it was first enacted in 1913.
- People with both low and middle incomes use the MID. According the most recent IRS tax return data available, 63 percent of the families who claim the MID earn between $50,000 and $200,000 per year.
- While in any particular year only about one-third of taxpayers itemize, of the taxpayers who itemize deductions, more than 81 percent take the MID.
Current law permits deductions of the interest paid on mortgage debt of up to $1 million on a primary residence and one additional residence. In addition, the interest paid on home equity loans of up to $100,000 may be deductedRead it all