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Realtors take notice. Preserve, Protect and Defend MID (Mortgage Interest Deduction)

By Billi Evans

Real Estate Agent with Murney Associates

March 28, 2011 04:33 AM

I got this email from my broker today. It even has a sample letter at the bottom so all the work is done for you.

You can shape legislation by being heard early and with strong conviction. This is one of those times. Congressneeds to hear from you. Warning signs have appeared on Capitol Hill about mortgage interest deductibility. Homeowners have taken big hits the past few years. We cannot have Congress adding to the injury.

Watch NAR President Ron Phipp's video Call for Action explaining why our action is so urgent. Then send your letter asking your Representative to cosponsor H.Res25, a bipartisan House resolution that affirms the value and importance of the Mortgage Interest Deduction.

Realtors need to direct Congress to Preserve, Protect and Defend the MID. No economic recovery is possible without a vibrant housing market. Please Take Action today.

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Dear (congressman),

As both your constituent and as one of more than one million members of the National Association of REALTORS, I remain steadfast in my belief that economic recovery depends in large measure on recovery in the housing market. That recovery is by no means complete and, in fact, the market is still quite weak.

I understand that throughout the spring and summer, Congress is likely to take many votes on huge bills that will affect economic, fiscal and tax policy. I urge you in the strongest possible terms to assure that each one of them will contribute to stabilizing housing markets and, just as important, do no harm. The simplest way for Congress to provide certainty to the housing market is to preserve the MID and oppose any legislation that would undermine it.

Please show your support of stable housing policy by cosponsoring H.Res.25, a bipartisan resolution offered by Rep. Gary Miller. Realtors believe that wide co-sponsorship of this resolution will send a strong signal that Congress remains committed to a housing recovery.
H. Res.25 expresses the sense of Congress that the current law governing the MID must be retained. To restrict current law in any way would undermine progress in the still-fragile housing recovery.
Please join Mr. Miller and your colleagues in sending a strong signal that you support a stable housing market and that you support the current MID rules. Please co-sponsor H.Res. 25.

Sincerely,
(your name)

house

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Andrew Mooers | 207.532.6573

MOOERS REALTY - Houlton, ME

Northern Maine Real Estate-Aroostook County Broker

They don't have the mortage interest deduction in Canada and not sure how long ago it changed or it ever was allowed. This comes up a lot as Congress looks for tax deductions to axe.

Mar 28, 2011 04:37 AM

Bryan Robertson

Los Altos, CA

I wrote a blog about this yesterday, you may want to check it out. I think we need to be prepared for a compromise in Congress that results in a decline in the MID for a limited period of time. Such a deal might be worked out as similar deals have been made with other tax changes in recent years. Depending on how it's structured, the net impact on taxes for lower and middle income taxpayers could be small and larger on wealthy and corporations.

Mar 28, 2011 04:47 AM

Lloyd Binen

Certified Realty Services - Saratoga, CA

Silicon Valley Realtor since 1976; 408-373-4411

No, no, no. Don't be short-sighted. If every special interest group acts to protect their turf and their special interest benefits...nothing changes and the deficit grows until it's unsustainable. The inevitable national bankruptcy will devastate the real estate market and the entire economy. 2011 will look like a hot market and these will be regarded as the 'good ole days'. We'll sell many, many fewer homes than if the MID is modified.

Everyone's ox must get gored, or nothing changes.

Mar 28, 2011 06:42 AM

Beth Larsen

RE/MAX Sedona - Sedona, AZ

Sedona Arizona

I just love that there's such a variety of opinion and open flow of information on AR. There's always a lot to get me thinking :-0

Mar 28, 2011 07:16 AM

Sondra Meyer:

EXP Realty, LLC - Corpus Christi, TX

See It. Experience It. Live It.

As a Texas CPA, I'm concerned that losing the Mortgage Interest Deduction would hurt people in more ways than one. Unless a Texas family had some major medical bills, the average family that I did taxes for generally did not itemize unless they had the mortgage interest deduction. They need that deduction to put them over the 2010 $11,400 standard deduction threshold for married filing jointly. Basically, if your itemized deductions are less than the standard deduction, you want to take the higher standard deduction.

If a person, doesn't itemize, then they can't deduct their charitable contributions, their property taxes nor their state and local tax deductions, plus some other things. Again, this assumes the family does not huge, major medical bills in relation to their income.

I have never done taxes for people that have state income tax, so I do not know how the effect of eliminating the mortgage insurance deductions would have those tax returns.

In Texas, if a healthy married couple with a healthy family has financed a low priced house, condo or manufactured home, they are probably not paying enough interest to be benefiting from the mortgage interest deduction on their taxes as it is now. So changes to this rule are not going to affect them one way or the other.

These are just my initial thoughts as a Texas Certified Public Accountant on the matter. I would sure hope that people are willing to make charitable deductions even if they can't itemize. I sure hope people are willing to buy homes if they know their property taxes won't be deductible if they don't itemize.

Mar 28, 2011 07:35 AM

Marilyn Boudreaux

Marilyn Boudreaux, Century 21 Bono Realty - Lake Charles, LA

Lake Charles LA Century 21 Realtor

We got the same call to action --we are following many changes closely here under my roof since my husband is a loan officer

Mar 28, 2011 02:50 PM

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