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Impact of Mortgage Interest Legislation on Maryland Homeowners

Proposed budget could cap deductions related to your home.

Do we as Maryland homeowners need to be concerned about what's going on in Annapolis?

Yes, we do!

One piece of legislation will affect the most important tax benefit you receive as a homeowner. 

The proposed Budget Reconciliation and Financing Act of 2012 (HB 87/SB 152), or BRFA for short, is NOT an honor as MARYLANDERS we want!

The BRFA bill would reduce the mortgage interest deduction and the detectability of state and local property taxes for many Maryland homeowners. I don't know about you, but it is the biggest deduction I have.

For nearly 100 years, the tax code has protected mortgage interest detectability.

If this bill were to pass, Maryland would be the first state to scale back the most important tax benefit that homeowners receive.

Because housing and real estate account for over 20 percent of Maryland's gross state product, more tax burdens on real estate and homeowners will only further hurt to the Maryland economic recovery. With so many facing diminished homeownership equity and/or underwater mortgages, the proposal would do more harm than good.

One-fifth of Maryland homeowners are currently underwater, and now homeowners find the one constant reliable tax benefit to owning a home is under attack. The deduction and the detectability of state and local property taxes can account for almost 70 percent of total deductions claimed by Maryland taxpayers in 2008.

If the tax deductions are capped, as proposed by the governor's budget, many Maryland homeowners will lose some of the value of their mortgage interest.

Please URGE your legislators to OPPOSE the governor's BRFA. Check with your accountant/CPA to see how it would affect your family.

For more info on the bill, check this link for a statement from the Maryland Association of Realtors or call 800-638-6425.

Thank you for reading my blog and I'll keep updating you on the real estate market. Please do not hesitate to contact me at any time with your real estate questions and/or needs. I'm here to help. 

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

hmj January 27, 2012 at 08:02 PM
Taxes are already among the highest in the nation. Out of control / wasteful spending and too many freeloaders. TIme to elect new leadership for Maryland's future.
Bernie Bargteil January 28, 2012 at 03:48 AM
I agree. The problem is us, we reelect 80% of the incombants. Limit terms in office.
Phoebe Woods Orsini January 28, 2012 at 11:42 PM
Here is a response to a question that was ask regarding the blog. Initially they are attempting to cap the amount of a deduction you can take based on your income nothing to do with value or asset levels. If they succeed, it will only be a matter of time before they eliminate the deduction for all. We have to stop this immediuately!

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