1、 https:/crsreports.congress.gov May 7, 2020The Mortgage Interest DeductionThe mortgage interest deduction is of interest to policymakers due to its association with homeownership. The mortgage interest deduction is also of interest because it is one of the largest tax benefits available to homeowner
2、s in terms of forgone federal tax revenue. For 2020, the Joint Committee on Taxation (JCT) estimates that the deduction will reduce revenues by $30.2 billion. The only larger housing-related tax expenditure is the exclusion for capital gains on the sale of a principal residence at a revenue cost of
3、$35.9 billion in 2020. This In Focus provides a brief overview of the mortgage interest deduction. P.L. 115-97, often referred to as the Tax Cuts and Jobs Act (TCJA), changed the tax treatment of mortgage interest starting in tax year 2018. Although the mortgage interest deduction is still generally
4、 available, TCJA reduced the maximum mortgage balance eligible for the deduction and restricted the deduction of interest associated with home equity loans. TCJA also increased the standard deduction, which reduced the number of taxpayers who claim itemized deductions generally, including for mortga
