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Tag: House

Senate, unlike House, would keep mortgage deduction intact

Senate, unlike House, would keep mortgage deduction intact

Finance
New details of GOP tax planSenate Republicans have a message for their House counterparts: leave the mortgage interest deduction alone. On Thursday, Senate Republicans unveiled their version of a tax reform bill, and it retains the current tax break that allows homeowners to deduct interest on mortgages up to $ 1 million,according to initial materials from the Senate Finance Committee. That's in contrast to the House bill proposed last week, that would limit the deduction to home loans over $ 500,000. That lower cap would have only applied to new mortgages. As lawmakers work to merge their two plans, a new limit could emerge on how much mortgage interest homeowners can deduct. So far this year, 5.4% of all loans originated were more than $ 500,000, according to data from ATTOM Data Solu...
Big House victory for GOP tax plan, but Senate fate unclear

Big House victory for GOP tax plan, but Senate fate unclear

Health
Republicans rammed a $ 1.5 trillion overhaul of business and personal income taxes through the House Thursday, edging toward the code's biggest rewrite in three decades and the first major legislative triumph for President Donald Trump and the GOP after 10 bumpy months of controlling government. The mostly party-line 227-205 vote masked more ominous problems in the Senate. There, a similar package received a politically awkward verdict from nonpartisan congressional analysts showing it would eventually produce higher taxes for low- and middle-income earners but deliver deep reductions for those better off. The Senate bill was approved late Thursday by the Finance Committee and sent to the full Senate on a party-line 14-12 vote. Like the House measure, it would slash the corporate tax rate...
House and Senate agree: The adoption tax credit stays

House and Senate agree: The adoption tax credit stays

Finance
What's in the GOP proposed tax planBoth the House and Senate agree: The adoption tax credit is off the chopping block. Republican Senators introduced their tax overhaul Thursday afternoon and it preserved the adoption tax credit, according to initial materials from the Senate Finance Committee. Last week, House Republicans introduced its 429-page tax overhaul that included repealing the credit. But Ways and Means Committee Chairman Kevin Brady offered an amendment on Thursday that would preserve the credit. Related: What's in the Senate Republicans' tax bill Adoption advocates breathed a sigh of relief at the change. Denise Bierly, a family attorney, is set to finalize her daughter's adoption by the end of year. She said the news gave her a sense of justice. "I had this rather guilty f...
5 Decisions That Matter Far More Than Buying a House

5 Decisions That Matter Far More Than Buying a House

Finance
It never fails.Every time I tell someone that my wife and I are buying a house, we get bombarded with blatantly false financial tropes. "Real estate is a great investment," someone will say, or "home equity is a great savings vehicle." Those are both objectively false -- real estate has barely beaten inflation historically , and your house is an incredibly illiquid asset, so it's hard to get access to all that home equity when you need it. (That's usually the point of a savings account.)But the one that really gets me going is. "It's the most important financial decision you'll ever make."That one's way off base.Image source: Getty Images.Let's break it down for a minute. According to research from the St. Louis Federal Reserve, the median price for a home sold in Au...
House tax bill would scrap deduction for medical expenses

House tax bill would scrap deduction for medical expenses

Finance
What's in the GOP proposed tax planThe tax bill unveiled by Republicans in the House on Thursday would not, as had been rumored, eliminate the tax penalty for failure to have health insurance. But it would eliminate a decades-old deduction for people with very high medical costs. The controversial bill is an effort by Republicans to revamp the nation's tax code and provide dramatic tax cuts for business and individuals. However, its future is not yet clear because Republicans, who control both the House and Senate, appear divided on key measures. The medical deduction, originally created in World War II, is available only to taxpayers whose expenses are above 10% of their adjusted gross income. Because of that threshold, and because it is available only to people who itemize their deduct...