There are a number of news articles and blogs – along with many interesting comments – regarding yesterday’s release of President Obama’s 2012 budget.  One item of interest is the home mortgage deduction.

Interest on a home mortgage is currently deductible on an income tax return, filed jointly, if the loan is less than $1 million ($500,000 for individuals). The reason for the loan – whether for a home purchase or remodel – doesn’t matter. If you have a mortgage loan, you receive the deduction.

Included in this new budget, homeowners that make over $250,000 and file a joint return ($200,000 for individual returns) would see their interest deductions decreased.

Will this discourage people from buying a house? Will this discourage retirees from purchasing a vacation home? Will this affect the housing market right when it’s starting to improve? Will this help the national deficit? There are a lot of questions to be answered.

 

What do you think?