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Fiscal Cliff: Mortgage Interest Deduction, Once a Sacred Cow, Is Under Scrutiny

Fiscal Cliff: Mortgage Interest Deduction, Once a Sacred Cow, Is Under Scrutiny
BY PETER EAVIS

A tax break that has long been untouchable could soon be in for some serious scrutiny.

Many home buyers deduct their mortgage interest when assessing their tax bill, a perk that has helped bolster the income of millions of families — and the broader housing market.

But as President Obama and Congress try to hash out a deal to reduce the budget deficit, the mortgage interest deduction will likely be part of the discussion.

Limits on a broad array of deductions could emerge in any budget deal. It is likely that any caps would be structured to aim at high-income households, and would diminish or end the mortgage tax break for many of those taxpayers.

https://dealbook.nytimes.com/2012/11/26/mortgage-interest-deduction-once-a-sacred-cow-is-seen-as-vulnerable/?hp

One thought on “Fiscal Cliff: Mortgage Interest Deduction, Once a Sacred Cow, Is Under Scrutiny

  1. Good. This deduction is nothing more than a vehicle for the banks to steal tax dollars.

    Also, anyone who thinks it is smart to give interest to the bank and only receive what amounts to a ratable deduction from their tax payment is an idiot. You are better off not carrying a mortgage if you can afford not to.

    Of course I understand that this means a one time downward shift in home values, including the one I own. I don’t care, because that means my liquid assets will go further towards buying more real estate, with minimal debt assumption. Yeah, the Realtors will have to take 6% of less, but who cares.

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