By Gabriela Rico | Arizona Daily Star
Industry leaders fear if taxpayers don’t use the mortgage interest deductions, fewer people will want to buy a house and for sale signs will hang longer.
While the local housing market is enjoying a recovery, tax reform proposals coming out of Washington are stoking fears about a damper on recent gains.
Among the changes being proposed is an almost-doubling of the standard deduction — from $12,600 to $24,000 for a married couple filing jointly.
The Tax Policy Center predicts more than 80 percent of taxpayers would opt for the standard deduction, versus itemizing to get a tax break on their mortgage interest.