Our leaders continue to overlook the importance of the housing market and how crucial it is in our nations economic recovery.

We have two very important issues that may be near expiration and impact most Americans.

1.     Mortgage Interest Deductions


Who Benefits from Housing Tax Deductions?

Profile of a First-Time 
Home Buyer 


Median Age



Median Household Income



Median Price of Home



Source: NAHB tabulation from the 2009 American Housing Survey


Contrary to assertions by some people, the income tax deductions for mortgage interest and real estate taxes primarily benefit middle class taxpayers with incomes between $50,000 and $200,000, according to the findings of a study by the National Association of Home Builders.

Taxpayers earning less than $200,000 pay about 40% of all income taxes. However, they receive about 70% of the total benefit of the mortgage interest deduction and about 80% of the total benefit of the real estate tax deduction.

Moreover, larger benefits go to larger households and families, such as those with children. And as a share of household income, larger benefits are collected by families with less than $200,000 income, indicating that these tax rules make the tax system more progressive.      

Read the full report here.


For more information about this item, please contact NAHB Communications at 202-266-8447 or via email at communications@nahb.org.



2.     The Mortgage Debt Relief Act of 2007

This Act generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.

The following are the most commonly asked questions and answers about The Mortgage Forgiveness Debt Relief Act and debt cancellation:



As we are in the beginning of a housing recovery does it make since to anyone to eliminate either of these?

Eliminating these can do nothing but slow our economic recovery or even STOP it in its tracks.

Please pass the word and tell all your friends to tell All our politicians Democrat & Republicans that we can’t gamble on our recovery by eliminating either program.