Mortgage Interest Tax Deduction
The Mortgage Interest Tax Deduction might get reduced or taken away. Currently, the mortgage interest deduction allows home owners to reduce their income tax by the interest paid on mortgage balances up to $1 million as well as on home-equity loans equaling $100,000. My guess is that will not going to last for long. I don't think it will be completely taken away as that will raise the taxes for many Americans but my guess the limit will be dropped to $500,000.
How will this effect the Real Estate market? Well in 2012, the San Diego home values went up and I expect it to go up another 5-10% in 2013 but if the mortgage interest tax deduction actually gets taken away completely, it will definitely hurt our recovering Real Estate market. If it gets reduced to $500,000, it will probably have a little effect on the market. I will keep you posted on this issue once it gets finalized.
If you have any question or interested in Buying or Selling San Diego Real Estate, please let me know. Thank you!
Cell: 858-349-2390 | E-Fax: 619-209-7597
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CA DRE # 01397640
Selling San Diego Real Estate since 2003
Paul CaparasDRE # 01397640
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