Representative Vern Buchanan (R-FL) is introducing bipartisan legislation to permanently extend and expand mortgage tax deductions and cut taxes on condominium owners.
Named the Middle-Class Mortgage Insurance Premium Act, Rep. Buchanan's bill revives a tax deduction for mortgage insurance premiums that expired in 2021. Mortgage insurance is required for home buyers who cannot afford a 20% down payment, and insurance premiums were tax-deductible from 2007 to 2021.
Additionally, the Act increases the income limit from $100,000 to $200,000 per family, expanding tax relief for more taxpayers.
"With housing prices skyrocketing in Florida and across the country, it's our responsibility to provide tax relief for middle-class families seeking to own a home," said Rep. Buchanan in his press release, adding, "My bipartisan legislation will help make the American Dream of home ownership real for millions of Americans."
Representative Jimmy Panetta (D-CA), the bill's cosponsor, said, "The costs of mortgage insurance can make buying a home that much more difficult for working families."
"Our bill would make the mortgage insurance premium tax deduction permanent and update the income threshold so more middle-class homeowners can benefit. Despite today's challenging housing market, this type of fix to modernize this tax provision would help more Americans achieve and sustain home ownership," Rep. Panetta added.
The Florida Congressman's second bill, the Fair Accounting for Condominiums Act, exempts high-rise condominium owners from the percentage of completion method of accounting, which currently only applies to houses.
Such an exemption is designed to counter tax issues that arise when condominium owners receive customer deposits while the structure is under construction. Because owners do not receive the purchase price balance until closing, condominium owners must still pay income taxes during the building's construction despite the balance not coming in yet.
"As millions of Floridians know, condos provide a great opportunity for low and middle-income families to enter the housing market," said Buchanan about this bill, adding, "We should be making it easier, not harder, for condo developers to build multi-unit condos, which will increase the housing supply for those most impacted by the nationwide housing crisis."
