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Renting Would Beat Owning Under House Tax Proposal, Realtors Say

Under the tax plan proposed by House Republicans, owning a home would make less financial sense than renting for the great majority of Americans, resulting in “untold negative economic and social implications,” the National Association of Realtors said.

Under the tax plan proposed by House Republicans, owning a home would make less financial sense than renting for the great majority of Americans, resulting in “untold negative economic and social implications,” the National Association of Realtors said.

In a letter to members of Congress on Friday, the group said the plan -- which reduces the mortgage-interest break to loans of $500,000 or less and caps the deduction for state and local levies to $10,000 -- would reverse more than a century of pro-homeownership tax policy in the U.S.

One of the Realtors’ examples: Under the plan, a family of four with an income of $120,000 would receive a tax cut of $3,408 if they rent their home. If that same family bought a home with a mortgage, their taxes would go up instead -- to the tune of $226.

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