By Vicki Needham - 05/03/11 10:25 PM EDT
The IRS doesn’t differentiate between mortgage types so there is no data available to calculate an exact amount of money the legislation would save, an aide told The Hill.
Taxpayers are allowed to deduct mortgage interest for up to two homes on their tax returns. Yachts equipped with bedding, toilet facilities and a kitchen qualify even if they aren’t used as a primary residence, the lawmakers said.
“We’re going to have to make some hard decisions to tackle our national debt, but this isn’t one of them,” Walz said. “Closing this tax loophole restores the mortgage interest deduction to its original purpose, helping middle class families realize the American dream through homeownership.”
In 2004, there were approximately 500,000 pleasure boats in the United States large enough to qualify for the tax break, but only around 100,000 people live full-time on boats, according to the 2000 census.