Posted on: 02nd Feb, 2008 04:41 pm
Instead of an outright deduction for mortgage interest, the proposed rules would allow a tax credit of 15 percent of the mortgage interest paid which, the panel contends, would be more helpful for low and middle income homeowners. In other words, if you paid $12,000 in interest on your new $200,000 mortgage this year you could deduct $12,000 from your income before computing taxes. Under the proposed rules you would instead receive a $1,800 credit against taxes owed. Every tax payer will have to evaluate his own situation so see how these potential changes will impact his bottom line
Jbarto, This was proposed way back in 2005. Have a look at http://www.mortgagefit.com/discuss/reduce-taxdeduction.html .
Well it is being proposed again, I just seen it on the news the other day or maybe a week ago.
I thought it was part of the new economic stimulus package that was just signed. I think if you check it out you will see it does include a tax break for the first time home owners and some mortgage help for those who are in trouble right now in their mortgage mess. Hopefully the mortgage industry will see some light at the end of the tunnel now.
If they keep this up, the guy making 20K a year could effectively make more after filing taxes than the guy making 50K a year. The tax credits are getting rediculious. I'm not against lower taxes for those that make less but many people are forgetting that many people not only dont pay federal tax but they get earned income credit on top of it. So they get all of their federal tax back and then get another 2000 to 3000 on top of it. It's not good enought that they don't pay taxes? We need to give them more money for free? Enough with the tax credits. Don't even get me started on the money that Bush is sending to everyone to "stimulate the economy". What a waste of money.
Well, i searched for it but jbarto i didn't get that the economic bill says something about interest deduction too. Can you refer the page where you got it?