Mortgage interest deduction threatened

President Obama released his budget proposal this afternoon. The Administration’s FY 2011 budget has again recommended, as did the FY 2010 budget, that the value of the mortgage interest deduction for upper income taxpayers be limited to the 28% bracket. NAR is 100% opposed to the provision that modifies the Mortgage Interest Deduction and is prepared to use its formidable array of resources against its enactment.

As currently drafted, the plan changes the Mortgage Interest Deduction by reducing the amount of mortgage deductibility on families earning over $250,000 (AGI), and on single tax payers earning over $200,000 (AGI). This proposed change in the Mortgage Interest Deduction will result in further erosion of home prices and home values.

You should be aware of this at election time.