Washington, DC – Today, Congresswoman Julia Brownley (D-CA) introduced the Mortgage Insurance Tax Deduction Act and the Mortgage Debt Forgiveness Act in order to make homeownership a more affordable reality for America’s working families.
“Homeownership is one of the best ways Americans can build personal wealth and save for a secure retirement,” said Congresswoman Brownley. “Homeowners are also able to tap into home equity to help pay for emergencies, like unexpected medical bills or prolonged unemployment. I introduced legislation which makes permanent the deduction for mortgage insurance premiums, which will reduce the cost for hardworking families seeking to become homeowners.
“In tandem with this bill, I also introduced legislation which would make permanent the tax provision that allows taxpayers to exclude income from the discharge of debt on their principal residence. Reducing the cost of debt relief, when a family is already struggling, will help middle-class families be able to keep their home at a time when they need help the most.”
Background on the Mortgage Insurance Tax Deduction Act
The Mortgage Insurance Tax Deduction Act would make permanent the deduction for mortgage insurance premiums. This provision of the federal tax code makes it more affordable for working families to purchase a home when they do not have the necessary 20 percent down payment.
Since the provision originally enacted in 2006, Congress has extended the provision numerous times through the regular tax extenders bill. Extending and making permanent the provision will provide security for Americans struggling to keep their homes.
The text of the bill can be found here.
Background on the Mortgage Debt Forgiveness Act
In 2007, Congress enacted legislation that allows taxpayers to exclude income from the discharge of debt on their principal residence. Qualifying debt includes debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure.
Since 2007, Congress has extended the provision numerous times through the regular tax extenders bill. The Mortgage Debt Forgiveness Act would make this tax provision permanent law.
The text of the bill can be found here.
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Issues: 118th Congress, Tax Policy