HF 4382

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/17/2022 02:21pm

A bill for an act
relating to taxation; individual income; eliminating the itemized deduction for
mortgage interest; amending Minnesota Statutes 2020, section 290.0122,
subdivision 5.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 290.0122, subdivision 5, is amended to read:

Subd. 5.

Interest.

A taxpayer is allowed a deduction for interest. The deduction equals
the amount allowed to the taxpayer as interest paid or accrued during the taxable year under
section 163 of the Internal Revenue Code deleted text begin with the following exceptions: deleted text end new text begin excluding qualified
residence interest, as defined in section 163(h)(3).
new text end

deleted text begin (1) qualified residence interest excludes home equity interest;
deleted text end

deleted text begin (2) acquisition indebtedness must not exceed $750,000, or $375,000 for a married
separate return, for indebtedness incurred on or after December 16, 2017; and
deleted text end

deleted text begin (3) mortgage insurance premiums treated as interest under section 163(h)(3)(E) are not
interest for the purposes of this subdivision.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2020.
new text end