US Representative Julia Brownley (D-CA) introduced several bills aimed at giving homeowners tax breaks.
One is the Mortgage Insurance Tax Deduction Act, which would make the existing mortgage insurance premium deduction permanent.
“Home ownership is key to helping Americans build personal wealth and save for a safe retirement,” Brownley said. “Homeowners can also use home equity to pay for emergencies like unexpected medical bills or persistent unemployment. Rather than making it harder for families to become homeowners, my bill includes permanent mortgage insurance deductions, lowering costs for hardworking families trying to achieve the American dream of home ownership. “
It also introduced the Mortgage Debt Forgiveness Act, which would make the existing income tax exclusion for mortgage debt relief permanent. Qualifying debts include debts that have been reduced through mortgage restructuring as well as mortgage debts that have been forgiven in connection with a foreclosure.
“Since 2007, Congress has added the Regular Tax Enhancements Act to this provision several times, and it is time to make it an integral part of tax law,” Brownley said. “Many homeowners have benefited from this tax rule since the last recession. The expansion and permanent provision of the provisions will help medium-sized families stay in their homes and provide future homeowners with stability and security. “
Finally, it sponsors the Law on the Protection of Homeowners from Disasters, which aims to restore tax deductions for uninsured property and accidental damage. The 2017 tax bill passed by the Trump administration is limited to only president-declared disasters. The Law to Protect Homeowners From Disasters would ensure families get economic relief without the need for presidential approval.
“If someone’s home is destroyed in a fire, flood, tornado, or hurricane, federal tax law shouldn’t discriminate on whether the loss was part of a president-declared disaster,” Brownley said. “Property owners should be able to settle uninsured damage. Rather than exacerbating a family’s tragedy, Congress should ensure that our tax laws treat Americans fairly by restoring tax deductions for property damage and accidental damage.
As the nation recovers from the pandemic, Congress must act to ensure that a new foreclosure crisis does not set in.
“Tax policies play an important role in helping Americans realize the dream of home ownership and keep home ownership affordable,” Brownley said.