Is Mortgage Interest Deduction Important or Not For Malibu Property Owners??

by ritasimpson on December 6, 2011

in Buying My Home, How's The Market

The National Association of Realtors is putting up a big fight in Washington to keep the Mortgage Interest Deduction in place. Many contest that it will not make a difference if it goes away. They cite examples such as what happened in Australia in 1984, when they stopped all capital gains-free sales and started charging taxes on most transactions.  Everyone thought the market would plummet but instead people woke up the next day and decide they still wanted the property.Would the same happen for Buyers interested in Malibu properties? A step like this would probably have less effect on the luxury property market  but it would be devastating for most mid range properties wherever they may be located.

The Mortgage-Interest Deduction is not a dollar-for-dollar tax deduction; it reduces taxable income. The maximum limit is a combined $1.1 million on first and second homes. A flat tax would nullify both.

The NAR will be putting all its lobbying muscle behind keeping the mortgage interest deduction in place. They are not about to let homes – first or second – be hit any harder.

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