The Wall Street Journal reports that a new study shows the trickle up effect of the mortgage interest tax deduction.
The study shows that the mortgage tax deduction helps wealthier people acquire larger homes, more than it helps boost home ownership.
Nevertheless, all home owners can benefit from this deduction, which helps lower the amount of income tax you pay.
Read the Wall Street Journal article: Mortgage Tax Breaks Trickle Up, New Study Shows.
Federal tax benefits for homeowners primarily help wealthier people borrow more money to buy larger houses rather than boost homeownership, according to a new study.
The ZIP Code-level analysis of Internal Revenue Service data, conducted by a team of economists for the right-leaning R Street Institute, examined how tax benefits are distributed across income levels and major metropolitan areas. The study estimates that tax preferences, particularly the mortgage-interest deduction, have helped drive up the size of houses by as much as 18% in the nation’s most affluent areas while not broadly encouraging people to buy homes.
How can the mortgage interest tax deduction help you?
One advantage of owning a home is taking advantage of the mortgage interest tax deduction.
If you are thinking about purchasing a home, let us show you how the mortgage interest tax deduction can make your home loan more affordable.