Winner: Mortgage tax deduction
"Mortgage interest deduction would stay, absolutely," Trump told OnTheIssues.org.
But fewer people might use the mortgage interest tax deduction, if Congress gets its way. Republican leaders in the House have outlined a "Blueprint" of proposed tax reform that would:
- Almost double the standard deduction and eliminate personal exemptions.
- Get rid of all itemized deductions except those for mortgage interest and charitable deductions.
Under the House GOP's plan, millions more homeowners would take the standard deduction rather than itemize deductions. The mortgage interest deduction would still be there, but it would be useful mostly to people who get fairly big mortgages. For a married couple filing jointly, the interest paid on a $300,000 mortgage would exceed the standard deduction for just the first two years of the loan. The tax benefit would be longer-lasting for homeowners who borrowed more than $500,000.