A new congressional study expects mortgage deduction claims to fall 30 percent in the wake of the Trump administration’s new tax laws.
Under the new law, homeowners will only be able to deduct interest on $750,000 worth of mortgage debt, compared to $1 million under the old rules. This rule will mostly hit high earners in expensive cities, as MarketWatch reports that the average price of a previously owned home is currently about $258,000.
The new law also aims to encourage taxpayers to forego the mortgage deduction entirely for cheaper homes by doubling the size of the standard deduction.
