Trump mortgage interest deduction

Under Trump tax plan, would you still deduct mortgage interest ? How much does the mortgage interest deduction really save us? Should we get rid of the mortgage interest deduction? Who can claim mortgage interest as a tax deduction? How to deduct mortgage interest on your tax return?

President Donald Trump and the House GOP unveiled a massive tax-reform bill on Thursday. It proposes a new limit — $500from the current $million — for home-mortgage-interest deductions. A big increase in the standard deduction , to $20for joint filers from the current $1600. Single filers would have a $10standard deduction , up from $300.

That last item, the bigger standard deduction , would mean that millions of homeowners would stop using the mortgage interest deduction. These include limiting the deductions for property taxes and lowering mortgage limits from $million to $750on your primary mortgage. SUBSCRIBE NOW Only $4. It’s a pretty sizeable tax break, and costs the American government around $billion a year. So it’s HUGELY costly.

Here’s the strange thing. For homeowners of a median-priced house in the Bay Area, the loss of mortgage interest and property tax deductions could total more than $100over the course of a 30-year mortgage , according. If you’re married filing separately, your limit is $370in mortgage interest.

CNBC reports that the ‘vast majority’ of those who benefit earn $100or more. While we wait for specifics on President-elect Trump ’s tax plan, the most important thing to remember is that there are no changes to the mortgage interest deduction for the upcoming tax season. A number of provisions would hit taxpayers in Democratic-leaning states hardest, like rolling back deductions for state and local taxes and cutting in half the popular mortgage interest deduction.

Republicans unveil tax cut bill, but the hard work awaits. The legislation, called the Tax. What Does a Bigger Standard Deduction Mean for Tax Filers? Trump Stimulus Checks May Be Delayed for Low-Income. If you have an existing mortgage , it will be grandfathered in under the old rules, which permit deducting the interest on the first $000of mortgage debt.

With the Trump tax plan, you can take an $10deduction for a new car the first year you own it. If you buy an SUV or a truck, the vehicle is 1percent deductible. Related: Legal Tax. The personal exemptions in the tax code now, worth $0for each taxpayer, spouse and dependent, would be eliminated.

The mortgage interest deduction limit for home loans originated before Dec. Find Out How Much You Can Afford. Only homes worth $800or more would qualify for the deduction. Those who do itemize, could end up paying more taxes. The new limit will decrease by $250to just $75000.

This change applies to all home contracts. However, under the new rules, you can only deduct interest on loans valued at a maximum of $75000.