I think alot of real estate lobbyist groups ( a whole bunch of them) are going to pummel the doors of Congress to try and stop any hint of eliminating this deduction (as they have done so often before).
If we enacted the Fair Tax and eliminated the need for income tax deductions, there would no longer be the false incentive to buy a house “to get the mortgage interest and property tax deductions” that I have heard some other agents profess is a golden goose reason to buy a house. Sure, it’s a side benefit of owning a home, but it shouldn’t be so important. Flexibility to resell, location, home that fits your lifestyle, and well within your budget should be much more important factors.
What I understand is that the plans were to combine the elimination of the mortgage deduction with a corresponding reduction of tax rate….which may in effect wash itself out.
But mark my words, there will be agents and brokers and heads of realtor associations whining about this for weeks to come.
Ah, the smell of stupidity….
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