≡ Menu

Slash the Home Mortgage Tax Deduction Porposed

The Wall Street Journal reported that the National Commission on Fiscal Responsibility & Reform, created by President Obama to make recommendation for balancing the budget by 2015, is looking for ways to reduce the deficit. One of the proposals on the agenda is slashing the home mortgage tax deduction. They say it could save $638 billion over the next 5 years. Currently, any interest paid toward any debt secured by your personal residence is fully deductible against income for purposes of income tax. This debt is limited to $1,000,000 of “acquisition indebtedness”, plus $100,000 of additional debt for a home-equity type loan. That would mean no tax deduction on your home loan’s interest!

{ 0 comments… add one }