The Tax Cuts and Jobs Act is all about making the tax code simpler, flatter, and fairer. One way we do that is by eliminating and consolidating confusing, redundant deductions, and only keeping those that most directly benefit the middle class. That is why our bill, as promised, preserves the mortgage interest deduction.
As expected, the special-interest defenders of the broken status quo are already mounting a scare campaign about this issue. So let’s set the record straight.
- The Mortgage Interest Deduction Is Here to Stay. Today, Americans can deduct the interest on the first $1,000,000 of their mortgage debt. If you currently have a mortgage, your ability to claim this deduction will not change in any way, shape, or form. Our bill specifically grandfathers in existing mortgages so nobody has the rug pulled out from under them.
- You Can Deduct Up to $500,000 on New Mortgages. The Tax Cuts and Jobs Act preserves the ability to deduct the interest paid on the first $500,000 of new mortgages. Even if you take out a mortgage over this amount, you will be able to write off the cost of a mortgage loan up to $500,000.
- Most Americans Will See No Change. As it stands, just 20 percent of taxpayers claim the mortgage interest deduction, and that number is expected to drop as more Americans opt to instead take the standard deduction, which nearly doubles to $24,400 for married couples under our plan. As the Washington Post explains, at least 97.5 percent of homes in the United States are valued under $500,000. That demonstrates the whole purpose of this plan: to simplify the system and provide more broad-based relief to middle-income families.
So don’t believe everything you see on TV or read online. The Tax Cuts and Jobs Act will keep the mortgage interest deduction in place, give average American households a $1,182 tax cut, and create nearly one million full-time jobs. To learn more, visit speaker.gov.