Regardless of who wins the election in November, there are probably changes on the horizon for homeowners.  With such a huge deficit, Washington will be looking at everything we hold dear as a possible revenue producer.

First, mortgage interest deductibility.  Chances are we will see something that limits deductibility over a threshold yet to be determined.  The most likely scenario will lower the amount you can deduct over a level of income...perhaps $200,000-$250,000.

 

Mortgage interest for second homes.  At first glance, if you can afford a second home, why should you get to deduct the interest?  On a second look, the second home market has a huge impact on economies in some areas.  On third look, I wonder how many legislators have second homes...hmmmm?!

 

Equity Loan Interest.  Within certain guidelines, this interest is currently deductible...I think this will be one of the first deductions to go to the wayside, it's an easy target. 

 

No matter what, the times, they are changing.  Be sure to pay attention to all these discussions, be sure to vote.  Be sure to have a conversation with a tax advisor along the way!