CURTAIL MORTGAGE INTEREST DEDUCTION? Not Likely!
"SACRED" MORTGAGE INTEREST DEDUCTION UNLIKELY TO GO AWAY!
Against a backdrop of mounting Federal Debt are plans to reduce the deficit through new taxes to certain high-income tax payers. The Obama Administration has proposed tax increases, along with reductions in the number of exemptions and deductions, for those earning more than $250,000 per year. As you can imagine, the proposal has been roundly criticized - especially by those earning north of that $250,000 threshold.
One proposal would reduce the amount of interest those in the higher-income brackets can deduct from their annual income taxes. But it is unlikely to become reality!
Why?
According to a story by Chicago Tribune Real Estate Columnist Mary Umberger from last Sunday's Trib, few in Washington would want to propose such a change in light of a sluggish U.S. Housing Market. It could throw a wrench into the Housing Market Turnaround, whenever it swings into high gear. And it would likely be defeated, or tabled.
Just over three years ago, a Presidential Advisory Panel proposed curtailing the Mortgage Interest Deduction, in favor of an across-the-board 15% tax credit for homeowners. It quickly died!
As have several similar proposals over the years.
DEAN MOSS & DEAN'S TEAM CHICAGO
