End to Mortgage Interest Deduction Might Not Effect You at All
HT to The San Francisco Chronicle. You can easily check out whether various changes being proposed to the mortgage interest tax deduction will effect your taxes or not. There are almost as many proposals floating around as there are elected representatives in Congress, but some of the most likely include complete elimination of the interest tax deduction, lowering the maximum cap from $1,000,000 to $500,000, or providing a 15% tax credit on the first $500,000.
The real estate and mortgage industries are fighting hard to preserve these breaks. However, the public seems strangely silent. There appears to be a general failure to understand that A. Some major change might actually happen; B. The effect on annual taxes is substantial for many; and C. The estimated 15% drop in home values will impact taxpayers who own homes in the $400,000 - $1.4 million range with a one time loss in wealth between $60,000 and $200,000.
Does this effect you? Do you feel helpless to do anything about it? Do you feel that it is a noble sacrifice of your assets and earnings? I'd love to hear from you.