NAR defends mortgage interest deduction

Commission report targets tax break for homeowners

The final report of a bipartisan deficit reduction commission recommends scaling back the tax break homeowners with mortgages have enjoyed for decades, and questions exemptions like those granted to homeowners when they sell their homes for a profit.

Although the full 18-member commission is not expected to adopt the report when it meets Friday — it includes many other controversial recommendations, and 14 votes are needed to make it official — the 66-page document could serve as a blueprint for future attempts at tackling the deficit.

The National Association of Realtors blasted the report today, claiming any changes to the mortgage interest deduction could depreciate home prices by up to 15 percent, and promising to "remain vigilant in opposing any plan that modifies or excludes the deductibility of mortgage interest."