Tuesday, August 28, 2007

Daily Real Estate News | August 27, 2007

Mortgage Interest Tax Deduction Falls Under Fire

Rep. John Dingell (D-Mich.) recently confirmed his plans to roll out legislation in September to wipe out an existing tax break for owners of large houses.

Under the measure, owners of residences measuring 3,000 square feet or bigger — as many as 8.6 million residential properties nationwide, according to 2003 federal government data — no longer would be able to claim a tax deduction on mortgage interest. Dingell's aim is to discourage wasteful energy use and help curtail pollution tied to climate change.

But housing industry officials warn that the current slump in the sector makes now a particularly challenging time to tinker with the deduction.

Doing so "would have repercussions for the housing market as a whole," according to Mary Trupo, NATIONAL ASSOCIATION OF REALTORS® spokeswoman.

Source: Deseret Morning News (Utah) (08/27/07)

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