Will the Wealthy See a Cut in Their Mortgage Deduction?
February 15th, 2011
February 15th, 2011
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?
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