Posted On March 07, 2017
Last week, US Treasury Secretary Steve Mnuchin addressed the Trump tax reform plan in an interview with Fox Business Network. He clarified that mortgage interest and charitable contributions would not change after the policy changes. Before the president took office, Mnuchin had alluded to plans to cap the amount of mortgage interest homeowners can deduct from their taxes.
Mortgage interest tax deduction varies from loan to loan and is subject to a cap. For married homeowners filing jointly, the cap is $1 million, for homeowners filing separately the cap is $500,000.
Secretary Mnuchin stated, “we are not taking away the charitable deduction and we are leaving the mortgage interest deduction as is.” In his speech to Congress last week, President Trump insisted that “massive tax relief” was on the way, but did not specify his plans.
The Treasury secretary projected that the tax reform is in progress and expects it to go up for a vote in August.