WASHINGTON (7/22/15)--The U.S. Senate Finance Committee voted 23-3 Tuesday to renew a number of temporary tax provisions, generally known as “tax extenders.” The provisions range from clean energy research to college expenses, but also include housing-related items.
Committee Chair Sen. Orrin Hatch (R-Utah) included a mortgage reporting amendment to the bill that was also included in the House-passed Highway and Transportation Funding Act of 2015 (H.R. 3038). The amendment, which CUNA has strongly objected to, would require additional mortgage reporting to the Internal Revenue Service.
Currently, taxpayers must include the name, address and taxpayer ID number with forms submitted to the IRS. The newly added provision would also require the amount of outstanding principal on the mortgage at the beginning of the calendar year, the address of the property securing the mortgage and the loan origination date.
CUNA wrote to the House Ways and Means Committee last week when the committee considered the H.R. 3038, saying the new reporting requirements would add to an “already staggering level of regulatory requirements” while providing no benefits to credit union members.
One provision would allow for the extension of mortgage insurance premiums to be treated as qualified residence interest, which is deductible. The deduction would be extended for private mortgage insurance premiums for amounts paid or accrued from Dec. 31, 2014, through the end of 2016.
Another provision would eliminate tax faced by homeowners when renegotiating the terms of a home loan and part of the outstanding mortgage is forgiven. This provision would apply only to principal residences for amounts canceled or forgiven after 2014 through the end of 2016.