If the tax reform proposal currently on the table is passed, only 5 percent of American homeowners would find it worthwhile to take the mortgage interest deduction (MID). Under the current law, a buyer today would have to buy a home worth a minimum of $305,000 in order to benefit from the MID. According to Zillow, 29 percent of homes in the U.S. are valued at $305,000 or more. But tax changes would double the standard deduction and eliminate the deductibility of state and local taxes, meaning a buyer would have to buy a home valued at $801,000 or more.
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