Some Good and Bad News on the Mortgage Interest Deduction
This is a thoughtful presentation and makes sense. i know in my own situation, my current interest rate is 3.25%, because I have always been a believer in ARMS for people who have jobs. I may write a post about that later on.
Elliott
www. topkinsandbevans.com
Much has been said recently about the possibility of eliminating or modifying the amount of mortgage interest homeowners can deduct from their taxable income; however, new information has come to light that may alter the picture. Here’s some good and bad news on the mortgage interest deduction.
An article in the LA Times reports that estimates released by the Joint Committee on Taxation show that the deduction will produce revenue losses significantly less ($88 billion over the next 3 years) than previously estimated; and the reason is both good and bad news. It seems that declining home prices and a tightened mortgage market (bad news for many), combined with some of the lowest interest rates in history (good news for most), will result in lower interest deductions available to taxpayers (bad news for taxpayers).
What this probably means is that there will be less pressure on lawmakers to modify or eliminate the deduction—at least for the present time. And while studies have shown that the deduction is much less of a motivating factor in home purchases than many believe, leaving it in place it will, in the short-term, be good news for most of those in housing and real estate.
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