Till date mortgage interest deductions were applicable for second homes as well as vacation properties. However, in a recent update, it was noted that many industry experts want the mortgage interest deductions for vacation properties and other non-primary residences should get eliminated.
What does the provision provide for?
Mortgage tax deductions allow the tax payers to deduct their mortgage interest payments on their second homes while they are filing their taxes.
What have the experts said about this elimination?
As per the opinion of certain industry experts, like Lewis Ranieri, the deduction is nice but is not necessary. Apart from this, he has also said that mortgage deductions on primary-residence should also be regulated and limited. Even the Congress as well as the Obama administration are in an agreement on this issue.
Now it is for the home buyers to wait and watch as to when this mortgage deduction will get eliminated.