FAQ: Is the mortgage tax deduction threatened?

FAQ: Is the Mortgage Tax deduction threatened?

Home equity (Photo credit: jacobgrier)

FAQ: Is the Mortgage Tax Deduction Threatened?

FAQ:  Is the Mortgage tax deduction threatened?

Changes in the law allowing itemizers to deduct interest on mortgage payments up to $1 million do not appear to be imminent.  The housing market is showing encouraging signs of recovery. Policymakers are being urged to adopt the physician’s motto of “do no harm.” FAQ: Is the mortgage tax deduction threatened?  It doesn’t look that way at the present time.  No politician wants to tinker with this at this point in history.  If the housing recovery were to stall they would be setting themselves up for blame.  That’s a can’t win but can lose proposition that no politician will touch.

Changes That are Possible

Changes being bandied about include possible elimination of tax breaks for second homes and limiting the deduction for interest on home equity loans.

Romney Made Comments on This…Look What Happened!

Another proposal that appears to be getting some traction is a 12% tax credit to all home owners up to $500,000.00 regardless of whether or not they itemize.  This proposal appears to have enough merit to be worth talking about.

Itemizing can be confusing to some

Some taxpayers find the process confusing.  They want the benefit but don’t like the paperwork.  Perhaps they have other sound reasons for not wanting to itemize. Maybe this is a starting point to a whole new approach to this question.  It’s true that most other countries do not offer home buyers mortgage interest deductions.  It still is a good policy that encourages home buying as it was intended to do.

For now at least the answer to FAQ: Is the Mortgage Tax Deduction Threated is no.  Stay tuned.

 

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After practicing law for 37 years Edward F. St. Onge, Sr. now devotes all his time to helping consumers achieve a high credit score with amazing speed. Learn the counter-intuitive secrets to credit scoring through his down to earth instructions backed by extensive knowledge of the laws and trends. All of the latest tricks and techniques that they don't want you to know now at your disposal. At last a level playing field for the consumer!

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