There have been many consequences discussed if the politicians in Washington don’t come to an agreement on the so-called “fiscal cliff” budget and tax crisis by December 31, 2012.
One aspect discussed in this blog has been the potential consequences associated withdeciding to limit or eliminate the federal mortgage interest tax deduction (See Loss of Mortgage Interest Deduction Would Hurt Massachusetts). The mortgage interest tax deduction is not set to expire, such as other tax breaks, on December 31, 2012; however, there is a lot of discussion about limiting it or eliminating it.
In general, any homeowner who pays U.S. taxes and who itemizes his or her federal taxes can deduct mortgage interest attributable to primary residence and second-home debt totaling $1 million, and interest paid on home equity debt of as much as $100,000.
Read the full article in buyersbrokersonly.com