Bill Text: NC H54 | 2017-2018 | Regular Session | Amended
Bill Title: Protect the Hardworking Taxpayers Act
Spectrum: Slight Partisan Bill (Republican 42-21)
Status: (Introduced - Dead) 2017-02-08 - Ref To Com On Finance [H54 Detail]
Download: North_Carolina-2017-H54-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2017
H 1
HOUSE BILL 54
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Short Title: Protect the Hardworking Taxpayers Act. |
(Public) |
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Sponsors: |
Representatives Hastings, Saine, Howard, and Setzer (Primary Sponsors). For a complete list of sponsors, refer to the North Carolina General Assembly web site. |
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Referred to: |
Finance |
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February 8, 2017
A BILL TO BE ENTITLED
AN ACT to remove the limitation on the income tax deduction for mortgage expense and property tax.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 105‑153.5(a) reads as rewritten:
"(a) Deduction Amount. – In calculating North Carolina taxable income, a taxpayer may deduct from adjusted gross income either the standard deduction amount provided in subdivision (1) of this subsection or the itemized deduction amount provided in subdivision (2) of this subsection that the taxpayer claimed under the Code. The deduction amounts are as follows:
…
(2) Itemized deduction amount. – An amount equal to the sum of the items listed in this subdivision. The amounts allowed under this subdivision are not subject to the overall limitation on itemized deductions under section 68 of the Code:
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b. Mortgage Expense and
Property Tax. – The amount allowed as a deduction for interest paid or accrued
during the taxable year under section 163(h) of the Code with respect to any
qualified residence plus the amount allowed as a deduction for property taxes
paid or accrued on real estate under section 164 of the Code for that taxable
year. For taxable years 2014, 2015, and 2016, the amount allowed as a deduction
for interest paid or accrued during the taxable year under section 163(h) of
the Code with respect to any qualified residence shall not include the amount
for mortgage insurance premiums treated as qualified residence interest. The
amount allowed under this sub‑subdivision may not exceed twenty thousand
dollars ($20,000). For spouses filing as married filing separately or married
filing jointly, the total mortgage interest and real estate taxes claimed by
both spouses combined may not exceed twenty thousand dollars ($20,000). For
spouses filing as married filing separately with a joint obligation for
mortgage interest and real estate taxes, the deduction for these items is
allowable to the spouse who actually paid them. If the amount of the
mortgage interest and real estate taxes paid by both spouses exceeds twenty
thousand dollars ($20,000), these deductions must be prorated based on the
percentage paid by each spouse. For joint obligations paid from joint accounts,
the proration is based on the income reported by each spouse for that taxable
year.
…."
SECTION 2. This act is effective for taxable years beginning on or after January 1, 2017.
