Photographer: Jacob Kepler/Bloomberg
Renting Would Beat Owning Under House Tax Proposal, Realtors SayBy
Under the tax plan proposed by House Republicans, owning a home would make less financial sense than renting for the great majority of Americans, resulting in “untold negative economic and social implications,” the National Association of Realtors said.
In a letter to members of Congress on Friday, the group said the plan -- which reduces the mortgage-interest break to loans of $500,000 or less and caps the deduction for state and local levies to $10,000 -- would reverse more than a century of pro-homeownership tax policy in the U.S.
One of the Realtors’ examples: Under the plan, a family of four with an income of $120,000 would receive a tax cut of $3,408 if they rent their home. If that same family bought a home with a mortgage, their taxes would go up instead -- to the tune of $226.