Mortgage Interest Deduction: The Candidates Weigh In

One major item on the real estate agenda for next year is the future of the mortgage interest tax deduction. This effects anyone currently writing off their interest on their home mortgage. President Obama stated during his acceptance speech a few weeks ago in Charlotte that he would not touch the mortgage tax deduction for middle-class families while leaving open the subject for higher wage earners who would more readily be affected if the deduction were limited, as some have suggested, to the first $500,000 of the outstanding mortgage balance. Offering deficit-cutting ideas before his first debate with President Obama, Mitt Romney says he might be willing to reduce income tax deductions used by millions of families for home mortgage interest and health care costs. He paid slight mention of this at the debate. He suggested the changes could be part of a plan that includes a 20 percent cut in tax rates across the board, continuation of upper income tax cuts that Obama wants to end and a comprehensive tax overhaul plan. Romney says his overall plans would invigorate the slowly recovering U.S. economy. There are many different policies that are important in this election, but in the real estate world, this is major. Make sure you are educated on all of the issues and cast your vote accordingly.