Surprise, surprise: Mortgage Interest Deduction on the chopping block (election, support, income)

[ambient]

This will probably not affect the lower/middle class.. it will get people like me and my wife. We make too much money, yet not so much that that deduction doesn't really matter to us when considering property out here in California. But we know this is coming, one way or another, whether Obama or Romney was in office.

[middle-aged mom]

Originally Posted by HappyTexan

RE is in the tank. Prices are not going to inflate anytime soon.
Fewer buyers out there that can qualify.

Real estate is local. Home values are appreciating in many areas ( not mine).

[chielgirl]

It's an entitlement.
You've railed against entitlements in many threads.
Looks like you got caught in one.

[freemkt]

Originally Posted by dragontales

won't happen. political suicide.

Class warfare works eh?

[freemkt]

Originally Posted by ambient

This will probably not affect the lower/middle class.. it will get people like me and my wife. We make too much money, yet not so much that that deduction doesn't really matter to us when considering property out here in California. But we know this is coming, one way or another, whether Obama or Romney was in office.

But hey, homeowners still have their Prop 13, homestead deductions preferential property tax rates...is this a great country or what?

[TrapperJohn]

Originally Posted by HappyTexan

For who ? Obama who can't be re-elected anymore ?

He doesn't care. He's drooling over all those new taxes. More to spread around.

[Roadking2003]

Originally Posted by EdwardA

I recall Romney getting much heat for not specifically naming which deductions he'd eliminate. Mostly because it was assumed he would propose eliminating the mortgage interest deduction.

Now it appears it's on the chopping block after all.
Mortgage Interest Deduction, Once a Sacred Cow, Is Seen as Vulnerable - NYTimes.com

I have no problem eliminating ALL interest deductions....over an extended period of time. But that should be coupled with a tax decrease. The Feds don't need any more revenue.

Implementing this tax increase next year will kill any possibility of a recovery.

[Roadking2003]

Originally Posted by chielgirl

It's an entitlement.
You've railed against entitlements in many threads.
Looks like you got caught in one.

Deductions are not entitlements. My money belongs to me. Sending less of my money to the idiots in DC is not an entitlement.

[Finn_Jarber]

Originally Posted by middle-aged mom

Real estate is local. Home values are appreciating in many areas ( not mine).

Prices jumped 3.5% last quarter. That is a significant raise.

[RiverBird]

Where is the huge realtor lobby on this? Eliminating the deduction will be a blow to the industry, especially in an era of mobility due to job changes/moves. Realtors should be uniting to oppose this. If it goes through, real estate prices will drop and rentals will rise. Perhaps a good time to be investing in rentals.