Homeowners who don't itemize their federal income tax deductions still benefit from the tax advantage of mortgage interest.
The federal mortgage interest deduction, known as "the MID," is one of the greatest means to encourage homeownership and promote healthy housing markets not only in Virginia, but throughout the nation. That's why all homeowners, including those who don't take the deduction, should be concerned about recent proposals in Washington, D.C., to cut back this important benefit.
The real estate industry is facing monumental issues in Congress, in the regulatory agencies that govern mortgage financing, in the statehouses that are dealing with critical budget crises and declining property tax revenues, and in municipalities and counties. Each of these issues impact Realtors' ability to do business and serve clients.
Mortgage Interest Deduction (MID)
Gerard "Jerry" Giovaniello, NAR's chief lobbyist and senior vice president of government affairs, is slated to speak to Virginia Realtors® at the 2011 Get Active conference in Richmond, VA, on February 11. Mr. Giovaniello will focus on national legislative issues, including the proposed changes to the mortgage interest deduction (MID).
This is how rumors are started. Yesterday several major media outlets (WaPo, NYT) ran stories about a sneak peek of a draft report from the Deficit Reduction Commission (DRC), a bipartisan commission charged with recommending steps to reduce the federal debt. The draft report contains a recommendation that the popular Mortgage Interest Deduction (MID) tax break be reduced or repealed in order to bring the government's expenses in line with its revenues.