Mortgage Interest Deduction Going Away - Likely . . . NO!

Good Evening, Everyone! 

An incredible 70 degree day in Chicago today - but good weather is fleeting here each spring.  Much cooler here on Wednesday!

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.

Check out our post via BlogChicagoHomes.com.

DEAN MOSS & DEAN'S TEAM CHICAGO