Will Trump ax mortgage interest tax deduction?

Business Insider:

The deductions for mortgage interest and charitable giving are “apple pie and baseball for the tax code,” Richard Auxier, a research associate at the Tax Policy Center, told Business Insider.

That’s why neither plan eliminates these deductions; that would be a political disaster.

However, “Trump’s tax plan does effectively limit two itemized deductions without explicitly doing so,” Kyle Pomerleau, director of federal projects at the Tax Foundation, told Business Insider. “By increasing the standard deduction, it reduces the number of itemizers.”

Here’s what Pomerleau means:

Let’s say a single filer pays about $10,000 in mortgage interest in the first year she owns a home. That far exceeds the current $6,300 standard deduction, so she itemizes her deduction to claim a greater tax break. It’s one reason she decided to buy rather than rent.

But under Trump’s plan she’s better off taking the standard deduction. Her taxes are simpler, but they’re no longer significantly different than if she had rented. That’s why industry groups are watching closely.

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