Preserve, Protect and Defend the Mortgage Interest Deduction
There is a potential threat of removing the MID and we need your help. The existing MID is available for interest on mortgages for a principal residence and one additional residence. The $1 million limitation represents the combined allowable debt on two residences.
An MID limitation could be part the bargaining that will accompany the budget and debt ceiling debates. Two proposals seem to have the most traction.
Click here for examples and detailed information
Click here for NAR's page on MID
Deficit Commission Proposal: The Deficit Commission report released in December 2010 recommended that MID be converted to a 12% tax credit. Compared to current law, a tax credit would provide a greater tax benefit to lower and middle income individuals and would reduce the tax benefit of MID for upper and high income taxpayers.
Administration Proposal: Each budget proposal the Administration has sent to Congress has included a proposal to limit the value of the MID by limiting its value to 28%. Those in the 33% and 35% brackets would be the only taxpayers subject to this limitation.
Kentucky currently has a higher home ownership rate than the US average and it is important for Kentucky to remain a leader in home ownership. We need to preserve the MID and oppose any legislation that would damage it.